Adani announced an investment in green energy on Wednesday. The announcement came as the company’s chairman congratulated U.S. President-elect Donald Trump on his election victory. “Adani announced the investment while also congratulating U.S. President-elect Donald Trump on his election win,” a Reuters report said.
It may be noted here that Trump has promised to simplify regulations for energy companies, making it easier for them to drill on federal land and construct pipelines.
Gautam Adani indicted in US: What the case is all about
As per the case by the US Securities and Exchange Commission, Gautam Adani has been charged with allegedly “defrauding American investors and bribing officials”. Adani, his nephew Sagar Adani, 30, executives of Adani Green Energy, and Cyril Cabanes, an executive of Azure Power Global Ltd were charged with “conspiracy to commit securities and wire fraud, as well as substantive securities fraud, for their roles in a multi-billion-dollar scheme to obtain funds from US investors and global financial institutions through false and misleading statements”.The indictment says Adani and the others paid approximately $265 million in bribes. They expected these contracts to generate $2 billion in profit over two decades. Prosecutors claim some involved in the scheme used code names like “Numero uno” and “the big man” to refer to Gautam Adani.
The indictment also alleges Adani, his nephew Sagar Adani, and another executive, Vneet Jaain, hid the bribes from lenders and investors to secure over $3 billion in loans and bonds for Adani Green Energy.
The charges fall under the Foreign Corrupt Practices Act, a US law against bribery in foreign business dealings.
“This indictment alleges schemes to pay over USD 250 million in bribes to Indian government officials, to lie to investors and banks to raise billions of dollars, and to obstruct justice,” said Deputy Assistant Attorney General Lisa H Miller.
“These offences were allegedly committed by senior executives and directors to obtain and finance massive state energy supply contracts through corruption and fraud at the expense of US investors,” she added.
Adani Group did not immediately respond to requests for comment, where the charges were announced early Thursday morning, Reuters added.
Reports said Gautam Adani and Sagar Adani have been issued arrest warrants. The US Securities and Exchange Commission filed related civil charges against the two men and another individual, Cyril Cabanes.
Also Read: Adani Green Energy raises $600 million via 20-year bonds
The US government has not yet revealed full details about the specific allegations against Adani and the other individuals. , a large conglomerate based in India.
Gautam Adani, 62, holds the position of 22nd richest person globally, according to Forbes magazine, with an estimated net worth of $69.8 billion.
This is the second major setback for the Indian billionaire, coming after the Hindenburg Research case where the US-based short-seller accused Adani Group of improperly using offshore tax havens. Adani Group has denied these allegations. The report, released in January 2023, had triggered a significant drop in Adani Group stocks, wiping out approximately $150 billion.
Adani scraps $600 million bond, other notes drop on US charges
Units of Adani Group scrapped a $600 million dollar bond on Thursday after US prosecutors charged Gautam Adani, the group founder with participating in an alleged bribe plot. The group’s existing US-currency notes plunged in Asian trading.
The Indian conglomerate decided not to proceed with the offering in view of recent press releases from Department of Justice and the Securities and Exchange Commission, according to a person familiar with the matter who asked not to be identified.
Adani Green Energy UP dollar notes sold in March declined by 15 cents, a record, according to data compiled by Bloomberg. Other notes from group companies dropped the most since a short-seller report in 2023 by Hindenburg Research sparked a more than $150 billion rout in Adani Group stocks.
Adani Electricity Mumbai dollar notes due in February 2030 dropped by 8.2 cents, the most since a short-seller report in 2023 by Hindenburg Research allegations.
Full list of names and details of defendants
According to a US Attorney’s Office (New York) office, the people involved in the briber and fraud case are:
GAUTAM S. ADANI
Age: 62
India
SAGAR S. ADANI
Age: 30
India
VNEET S. JAAIN
Age: 53
India
RANJIT GUPTA
Age: 54
India
CYRIL CABANES
Age: 50
France / Australia
SAURABH AGARWAL
Age: 48
India
DEEPAK MALHOTRA
Age: 45
India
RUPESH AGARWAL
Age: 50
India
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
