The U.S. Department of Justice has uncovered extensive evidence linking Adani to a sophisticated bribery scheme, including detailed records on mobile phones. The scheme involved corrupt meetings and falsified documentation intended to conceal bribe payments, all aimed at obtaining financing for solar energy projects. In addition, the Securities and Exchange Commission (SEC) has charged Adani Green Energy for misleading U.S. investors.
BY PC Bureau
US authorities on Wednesday indicted Indian billionaire Gautam Adani and several other executives for a massive fraud scheme, as reported by CNN. The US Department of Justice alleges that Adani and his associates offered over $250 million in bribes to Indian government officials to secure lucrative solar energy contracts.
According to the DOJ, the bribes were intended to deceive investors and banks into providing billions of dollars in financing. The scheme, which operated between 2020 and 2024, involved a complex web of bribery, fraud, and obstruction of justice.
Deputy Assistant Attorney General Lisa Miller stated that Adani and his associates, including his nephew Sagar Adani, engaged in a series of corrupt activities to enrich themselves and their companies. These activities included manipulating stock prices, falsifying financial records, and using shell companies to launder money.
The solar energy supply contracts at the center of the scheme were expected to generate more than $2 billion in profits after taxes over a 20-year period. Authorities allege that between 2020 and 2024, Gautam Adani personally met with an Indian government official to further the bribery plan. The accused executives regularly convened to discuss the illegal arrangement, and investigators uncovered evidence on several mobile devices.
The Department of Justice reported that the documentation on these phones included a detailed record of bribe payments, a photograph of a summary document listing various bribe amounts, and data analyses from PowerPoint and Excel files that laid out methods for concealing the payments. These records painted a clear picture of the fraudulent scheme.
Adani and his associates are said to have tried to conceal these illegal activities from US investors to secure financing, including funds for the solar energy contracts, which were allegedly obtained through bribery. The DOJ emphasized that this deceptive conduct was designed to mislead investors and secure billions in funding.
In a parallel action, the Securities and Exchange Commission (SEC) also charged Adani, his nephew, and other executives for their role in the bribery scheme. The SEC alleges that Adani Green Energy Ltd., a company controlled by Adani, raised over $175 million from US investors based on false and misleading information.
The indictment comes less than a year after Hindenburg Research, a US short-seller, accused Adani of stock manipulation and accounting fraud. The report caused a significant decline in Adani’s net worth, which at one point exceeded that of Jeff Bezos.
Adani has built a vast business empire spanning various sectors, including ports, power, and renewable energy. Despite the allegations, Adani maintains his innocence and has vehemently denied all wrongdoing.
The indictment and SEC charges have sent shockwaves through the global financial community and raised serious questions about corporate governance and regulatory oversight in India. As the legal proceedings unfold, the full extent of the alleged fraud and its impact on the Indian economy remains to be seen.
