Indian billionaire Gautam Adani, one of Asia’s wealthiest individuals, has been charged with orchestrating a $265 million bribery scheme to secure lucrative government contracts in India.
U.S. prosecutors filed the indictment on Wednesday in New York, alleging the 62-year-old Adani and seven others concealed corruption to raise over $3 billion from global investors, including U.S. firms.
The charges also involve Adani’s nephew, Sagar Adani, and former CEO of Adani Green Energy, Vneet Jaain, with offenses including securities fraud and wire fraud conspiracy. Prosecutors allege that the defendants obstructed a U.S. investigation launched in 2022.
The allegations center on Adani’s renewable energy company, which prosecutors claim paid bribes to Indian officials to secure contracts expected to yield $2 billion in profits over two decades.
The indictment describes Adani as “Numero Uno” in private communications and accuses him of meeting personally with Indian government officials to advance the scheme.
U.S. Attorney Breon Peace stated, “As alleged, the defendants orchestrated an elaborate scheme to bribe Indian government officials to secure contracts worth billions of dollars and… lied about the bribery scheme as they sought to raise capital from U.S. and international investors.”
He declared his office would ensure “rooting out corruption in the international marketplace.”
However, the Adani Group dismissed the charges as “baseless” and announced plans to pursue all legal recourse. In a statement, the conglomerate said, “We strongly deny these allegations and will take every possible measure to defend ourselves.”
The charges, however, have had immediate financial repercussions. Shares of Adani Enterprises plummeted by 22% on Thursday, with other group firms, including Adani Green Energy, also suffering sharp declines. Adani Green Energy has since halted a planned $600 million bond offering.
Due to the situation, there has been a political uproar in India, where Adani is known for his close ties to Prime Minister Narendra Modi. Opposition leader Rahul Gandhi demanded Adani’s arrest and called for the removal of Madhabi Puri Buch, the chief of India’s Securities and Exchange Board (SEBI), who has faced allegations of links to Adani’s offshore dealings. Gandhi accused Modi of shielding the billionaire from accountability, saying, “Adani must be arrested, and a thorough investigation must be launched to uncover the truth.”
The BJP dismissed these claims. Party leader Sambit Patra responded, “The law will take its course. It is up to the Adani Group to defend itself.”
Modi and his government have yet to comment.
Meanwhile, U.S. investment firm GQG Partners, which has invested nearly $10 billion in Adani Group companies, announced it is “monitoring the charges” and may adjust its portfolio accordingly. Credit rating agency Moody’s labeled the indictment as “credit negative,” citing concerns about the group’s ability to secure future financing and adhere to governance standards.
Expert Opinions
Experts have warned that this latest development could have long-lasting repercussions. Michael Kugelman, director of the South Asia Institute at the Wilson Center, described the indictment as a “body blow” to Adani’s efforts to rebuild his reputation after a 2023 report by Hindenburg Research accused the conglomerate of stock manipulation and accounting fraud.
“This indictment goes beyond allegations from a research firm—it’s now a formal charge from U.S. authorities, making it much harder for Adani to shake off these claims,” Kugelman told the BBC’s Business Today program.
Adani’s legal battles in the U.S. could also hinder his conglomerate’s future operations as lenders and investors reassess their association with the group.
