Billionaire Gautam Adani and several executives from Adani Group face serious charges related to a $250 million bribery and fraud scheme to secure lucrative solar energy contracts. The US Department of Justice and SEC allege the group misled investors and financial institutions to secure funds for projects linked to a multi-billion-dollar Indian government initiative. Adani Group has denied the charges, which come after a significant drop in the conglomerate’s market value.
The White House expressed confidence that strong US-India relations will help both nations navigate the turmoil stemming from bribery and fraud charges against Indian billionaire Gautam Adani. White House Press Secretary Karine Jean-Pierre addressed the allegations during a press briefing on Friday, acknowledging the charges against Adani, the chairman of the Adani Group.
Adani, 62, along with his nephew Sagar Adani, 30, and other executives, was indicted in New York for their involvement in an alleged multibillion-dollar bribery and fraud scheme to secure lucrative solar energy contracts.
“We are aware of these allegations, and I would refer you to the SEC (Securities and Exchange Commission) and DOJ (Department of Justice) for details on the specifics of these charges against the Adani Group,” Jean-Pierre said.
While downplaying concerns about potential fallout with India, Jean-Pierre emphasized the strength of US-India relations, stating, “Our relationship with India is based on a solid foundation, strengthened by the ties between our people and our cooperation across a wide range of global issues.” She added that the US remains confident in its ability to manage the issue, as it has done with other challenges in the past.
Adani, along with executives from Adani Green Energy Ltd and Cyril Cabanes from Azure Power Global Ltd, was charged with conspiracy to commit securities and wire fraud, as well as substantive securities fraud. The DOJ alleges they orchestrated a scheme to mislead US investors and global financial institutions in order to secure funding.
The Adani Group has denied the charges, calling them “baseless.” This denial followed a sharp decline in the conglomerate’s shares, which fell by more than 23 percent on Thursday, resulting in a loss of over Rs 2 lakh crore in market value.
According to the SEC, the bribery scheme was designed to help Adani Green and Azure Power capitalize on a multi-billion-dollar solar energy project awarded by the Indian government. The SEC’s complaint alleges violations of federal securities laws related to fraud.
Federal prosecutors claim that between 2020 and 2024, Adani and his associates paid over $250 million in bribes to secure solar energy contracts expected to yield over $2 billion in profits over the next 20 years. During this period, Adani Green raised more than $175 million from US investors, while Azure Power’s stock was traded on the New York Stock Exchange.
The SEC and DOJ are seeking permanent injunctions, civil penalties, and bars on the executives from holding positions in publicly traded companies.
