Indian billionaire Gautam Adani faces serious legal challenges after US prosecutors charged him with orchestrating a $250 million bribery scheme. The charges relate to securing renewable energy contracts that promised $2 billion in profits over 20 years.
The US Department of Justice filed criminal charges against Adani and seven associates in New York on Wednesday. The indictment claims they promised Indian officials substantial bribes to win energy contracts.
Indian billionaire Gautam Adani. Courtesy photo
Among those charged is Adani’s nephew, Sagar Adani, 30, who allegedly documented bribe details on his phone. The prosecution claims they photographed documents showing bribe amounts during meetings between 2020 and 2024.
The impact on Adani’s business empire was immediate and severe. The group’s listed companies saw $34 billion wiped off their market value on Thursday. Share prices fell between 10 and 20 percent on Indian stock exchanges.
Furthermore, Adani Green Energy cancelled a planned $600 million bond sale following the indictment. The company had previously raised over $3 billion through loans and bonds from international investors.
The legal troubles have spread beyond India’s borders. Kenya’s President William Ruto cancelled a $2.6 billion deal with the Adani Group on Thursday. The cancellation came shortly after the US charges became public.
These charges mark another blow to Adani’s reputation. In January 2023, Hindenburg Research accused the group of stock manipulation and accounting fraud. Though Adani denied these allegations, the group lost $112 billion in market value.
The current charges focus on violations of the US Foreign Corrupt Practices Act. Prosecutors allege Adani and his associates tried to conceal evidence by deleting emails and electronic materials.
Opposition parties in India have called for Adani’s arrest. Congress Party leader Rahul Gandhi claims Prime Minister Narendra Modi is protecting the businessman. The two men share close ties dating back to Modi’s time as chief minister of Gujarat.
The Adani Group strongly denies all allegations. In a statement, they claimed to maintain “the highest possible standards of governance and transparency.” The group plans to pursue all available legal options.
The future remains uncertain for the 62-year-old tycoon. While US prosecutors plan to issue international warrants, extradition from India remains complicated. The process depends on both countries’ legal frameworks and political considerations.
Adani’s business empire spans various sectors. His group controls India’s largest private port and operates multiple airports. They also manage power plants and own media outlets like NDTV.
Before these charges, Adani ranked as the world’s third-richest person. He now stands as the 25th wealthiest individual globally, with Forbes estimating his worth at $69.8 billion.
The case highlights growing scrutiny of international business practices. It also raises questions about corporate governance and transparency in emerging markets.
The US Justice Department has not specified when a trial might begin. They haven’t clarified whether Adani must appear in person for court proceedings.
Meanwhile, India’s market regulator SEBI continues its investigation into earlier allegations. The Supreme Court previously found no evidence of fraud based on the Hindenburg claims.
For international investors, this case serves as a reminder of compliance risks. It demonstrates how allegations of corruption can significantly impact even the largest business empires.
The coming months will likely bring more developments. Both legal proceedings and market reactions will shape the future of one of Asia’s largest business conglomerates.
