Indian billionaire Gautam Adani and other executives were indicted in New York by US prosecutors for their alleged roles in a years-long, multi-billion-dollar bribery and fraud scheme involving plans to develop a major solar power plant.
The authorities charged Adani and two other executives at Adani Green Energy, his nephew Sagar Adani and Vneet Jaain, with agreeing between 2020 and 2024 to pay more than $250m in bribes to Indian government officials to obtain solar energy supply contracts expected to yield $2bn in profits.
Prosecutors said the renewable energy company also raised more than $3bn in loans and bonds during this period based on false and misleading statements.
According to reports, shares in the group’s listed firms fell between 10% and 20%, wiping out just under $30 billion in total market value.
It has also created political waves inside India with the Indian National Congress, a major rival of Modi’s ruling Bharatiya Janata Party, renewing calls for a parliamentary investigation into Adani’s companies.
In response, Adani Green Energy issued an official statement, saying it will not move forward with its proposed USD-denominated bond offerings.
Adani Green Energy, a major player in India’s renewable energy sector, made this move as it explores the legal and financial implications of the ongoing investigation.
The Adani Group also denied allegations made by the US Department of Justice and the US Securities and Exchange Commission and termed them baseless. “As stated by the US Department of Justice itself, “the charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty.” All possible legal recourse will be sought,” Adani Group Spokesperson added.
