Indian billionaire Gautam Adani has been charged with orchestrating a $250 million bribery scheme to secure lucrative renewable energy contracts, as alleged by US prosecutors in a New York indictment. The charges claim Adani and senior executives bribed Indian officials to win contracts projected to generate over $2 billion in profits across 20 years, while misleading investors about the company’s anti-bribery practices to raise $3 billion in capital from US and international sources.
Key Allegations and Impact:
- Adani personally met Indian officials as part of the scheme, prosecutors claim.
- The charges have triggered a $20 billion market sell-off in Adani Group stocks, with shares plummeting over 10%.
- Adani Green Energy, central to the allegations, canceled a planned $600 million bond offering.
- The Adani Group denies all charges, calling them “baseless” and pledging to pursue legal recourse.
Background: The accusations follow the 2023 Hindenburg Research report, which alleged stock manipulation and accounting fraud within the Adani empire, leading to an Indian regulatory probe. Adani previously denied those allegations, but the US probe reportedly faced obstruction.
Reactions:
- Moody’s Ratings: Called the indictment a “credit negative” for the group, highlighting potential liquidity and governance risks.
- Political Fallout in India: Opposition leader Rahul Gandhi demanded Adani’s arrest and the removal of SEBI’s chief, alleging political favoritism.
- US Investment: GQG Partners LLC, a major Adani investor, is monitoring the situation and may reassess its position.
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The charges come at a politically sensitive time, with Adani recently pledging $10 billion in US investments following Donald Trump’s reelection victory, signaling possible geopolitical implications. This case marks a significant blow to Adani’s efforts to rebuild his image amid intensifying global scrutiny.
