Indian billionaire Gautam Adani, one of the world’s richest individuals and chairman of the Adani Group conglomerate, has been charged in New York federal court in connection with an alleged multibillion-dollar fraud and bribery scheme. According to U.S. prosecutors, Adani and several co-defendants orchestrated a wide-ranging conspiracy to secure lucrative solar energy contracts in India while misleading investors about their compliance with anti-corruption laws.
Key Allegations
The indictment, filed in the U.S. District Court in Brooklyn, accuses Adani and seven others of paying over $250 million in bribes to Indian government officials. The alleged bribes were made to secure government solar energy contracts, which yielded more than $2 billion in profits for Adani Green Energy Limited and Azure Power Global, two companies at the heart of the case.
Adani, alongside his nephew Sagar Adani and Vneet Jaain, both executives at Adani Green Energy Limited, is accused of misleading U.S. and international investors while raising over $3 billion in capital to fund these projects. The charges include securities fraud conspiracy, wire fraud conspiracy, and securities fraud.
Co-Defendants and International Scope
Among the seven co-defendants are Ranjit Gupta and Rupesh Agarwal, former executives from Azure Power Global, as well as three former employees of Caisse de Dépôt et Placement du Québec (CDPQ), a Canadian institutional investor. The CDPQ employees—Cyril Cabanes, Saurabh Agarwal, and Deepak Malhotra—are accused of facilitating bribes and obstructing investigations by U.S. authorities, including the Securities and Exchange Commission (SEC).
Cabanes, a dual resident of France and Australia, is the only defendant not residing in India. The indictment also alleges that false statements and material omissions were made to investors during a bond issuance that raised capital for the solar energy projects.
U.S. Jurisdiction
While the alleged criminal activities primarily occurred in India, U.S. prosecutors assert jurisdiction due to actions taken in the Eastern District of New York, including fraudulent financial misrepresentations linked to U.S. investors. Adani Green Energy reportedly raised more than $175 million from U.S. investors, and Azure Power’s stock traded on the New York Stock Exchange.
SEC Civil Complaints
In addition to criminal charges, the SEC has filed civil complaints against Gautam and Sagar Adani, as well as Cyril Cabanes. The complaints accuse them of orchestrating a bribery scheme to secure government commitments to purchase energy at inflated rates, benefiting Adani Green and Azure Power.
“Gautam and Sagar Adani orchestrated a bribery scheme that involved paying or promising to pay the equivalent of hundreds of millions of dollars in bribes to Indian government officials,” the SEC said in a statement. The agency further noted that Cabanes facilitated the authorization of these bribes both in the U.S. and abroad.
A Setback for Adani
This indictment comes as another major blow to Gautam Adani, whose business empire suffered significant reputational and financial damage in early 2023 following a scathing report by Hindenburg Research. The report accused the Adani Group of engaging in decades-long stock manipulation and accounting fraud, branding it “the largest con in corporate history.” Adani refuted those allegations in a comprehensive 413-page response.
Despite these challenges, Adani remains one of Asia’s wealthiest individuals, with a reported net worth of $85 billion. However, his fortune has dwindled significantly since the Hindenburg report.
Legal and Financial Implications
None of the defendants are currently in U.S. custody, and extradition proceedings may be complex, given that most of them reside outside the United States. Meanwhile, the charges could have a far-reaching impact on Adani’s conglomerate, which spans industries including renewable energy, ports, and infrastructure.
This case underscores the growing scrutiny of international business dealings, particularly in the renewable energy sector, and the willingness of U.S. authorities to pursue allegations of corruption and fraud beyond their borders.
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