Indian billionaire Gautam Adani charged with $250 million bribery in US case

U.S. prosecutors have charged Indian billionaire Gautam Adani, chairman of the sprawling Adani Group conglomerate, with orchestrating a bribery scheme involving hundreds of millions of dollars. The charges, announced Wednesday, allege that Adani and seven associates paid over $250 million in bribes to Indian officials to secure lucrative solar energy contracts.

The contracts, projected to generate more than $2 billion in post-tax profits over two decades, were allegedly financed through misleading statements made to U.S. investors and financial institutions. The defendants are also accused of obstructing justice by attempting to conceal the payments and tampering with evidence.

“This indictment alleges schemes to pay over $250 million in bribes to Indian government officials, to lie to investors and banks to raise billions of dollars, and to obstruct justice,” said Deputy Assistant Attorney General Lisa Miller.

The FBI, which assisted in the investigation, echoed the Justice Department’s concerns. “Adani and others allegedly bribed the Indian government to secure profitable contracts for their businesses, while attempting to conceal the conspiracy,” said FBI Special Agent James Dennehy.

Adani, a close ally of Indian Prime Minister Narendra Modi, has been a polarizing figure in India. Both men hail from Gujarat, where Adani rose from modest beginnings to become one of the country’s wealthiest individuals.

The 61-year-old industrialist built his empire through a series of bold ventures, including the construction of a major shipping port in Gujarat in the 1990s. Over the years, Adani Group has expanded into coal, cement, airports, and media, often raising concerns over its aggressive growth strategies.

In 2023, U.S.-based Hindenburg Research accused the conglomerate of engaging in “brazen stock manipulation and accounting fraud” over decades, leading to a significant decline in the group’s stock value. The report also highlighted a pattern of government leniency that it claimed discouraged scrutiny of the group’s activities.

Prosecutors allege that one of Adani’s associates meticulously tracked the bribes using a mobile device, documenting payments to Indian officials. They also claim that evidence was tampered with to derail the investigation

Despite the severity of the allegations, none of the defendants, including Adani, are in custody, according to U.S. prosecutors.

Adani Group has yet to comment on the indictment, which adds to mounting legal and reputational challenges for the embattled industrialist.

The case underscores growing international efforts to combat corruption in global markets and protect investors from fraudulent schemes. “This indictment reaffirms our commitment to holding powerful individuals accountable, no matter how complex or far-reaching the schemes may be,” Miller said.

The investigation, involving the U.S. Department of Justice and the FBI, signals heightened scrutiny on multinational corporations and their compliance with anti-corruption laws.