India’s Gautam Adani, one of world’s richest people, charged in US with bribery and fraud

The billionaire and 7 others are accused of agreeing to pay US$265 million to Indian officials to obtain solar energy supply contracts

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Adani Group chairman Gautam Adani speaks at the World Congress of Accountants in Mumbai in November 2022. Photo: AFP

Published: 7:30am, 21 Nov 2024Updated: 12:52am, 22 Nov 2024

Indian billionaire Gautam Adani has been indicted by US prosecutors for his alleged role in a US$265 million bribery scheme, plunging his conglomerate deep into crisis for the second time in two years.

The multiple counts of fraud levelled against Adani, who is one of the world’s richest people, and seven other defendants, sent shares and bonds of Adani firms tumbling on Thursday. Adani Green Energy, the company at the centre of the allegations, also cancelled a US$600 million bond sale.

Arrest warrants have been issued for Adani and his nephew Sagar Adani and prosecutors plan to hand those warrants to foreign law enforcement, court records show.

Members of National Students Union of India (NSUI), the student wing of the Indian National Congress, protest against Gautam Adani, demanding his arrest, in New Delhi, India on Thursday. Photo: EPA-EFE

Adani Group called the charges “baseless”. “The allegations made by the US Department of Justice and the US Securities and Exchange Commission against directors of Adani Green are baseless and denied,” the conglomerate said in a statement.

“All possible legal recourse will be sought,” it added.

The charges follow much turmoil for the Adani Group last year after short-seller Hindenburg Research issued a report that accused it of using offshore tax havens improperly – which the company has denied.

US federal prosecutors said the defendants agreed to pay the bribes to Indian government officials to obtain contracts expected to yield US$2 billion of profit over 20 years, and develop India’s largest solar power plant project.