US Court Charges Gautam Adani in $250 Million Bribery and Fraud Case

Gautam Adani, chairman of the Adani Group and one of the world's richest individuals, has been indicted in New York for his alleged role in a multimillion-dollar bribery and fraud scheme, US prosecutors announced on Wednesday.

Adani, along with seven co-defendants, including his nephew Sagar Adani, is accused of paying $250 million in bribes to Indian government officials to secure contracts for a solar power project expected to yield $2 billion in profits over 20 years. Prosecutors said the bribes facilitated the development of what would become India’s largest solar power plant.  

Allegations of Corruption and Fraud

The indictment alleges that Gautam Adani, Sagar Adani, and Vneet Jaain, the former CEO of Adani Green Energy, raised more than $3 billion through loans and bonds by concealing their corruption from lenders and investors. Prosecutors revealed that conspirators referred to Gautam Adani in code as “Numero Uno” and “The Big Man.” Sagar Adani allegedly used his mobile phone to track bribe-related details.

The charges include securities fraud, securities fraud conspiracy, and wire fraud conspiracy against Gautam Adani, Sagar Adani, and Jaain. The Adanis are also defendants in a civil case filed by the U.S. Securities and Exchange Commission (SEC). 

Five other defendants were charged with conspiring to violate the Foreign Corrupt Practices Act, a U.S. anti-bribery law, while four were also accused of obstructing justice. The co-defendants include Ranjit Gupta and Rupesh Agarwal, a former CEO and chief strategy officer of Azure Power Global, a company that allegedly paid some of the bribes. Cyril Cabanes, a dual French-Australian citizen and Azure director, was also charged with wrongdoing by the SEC.

Trump Ties and US Investments

The charges against Adani come shortly after he announced plans to invest $10 billion in U.S. energy security and infrastructure projects, which he claimed would create 15,000 jobs. The announcement was made via social media platform X, where Adani also congratulated US President-elect Donald Trump on his 2016 election victory.

Trump has previously pledged to ease regulations for energy companies, including permitting new pipelines and expanding drilling on federal lands, aligning with Adani Group’s energy ambitions.

Arrest Warrants and Legal Action

Arrest warrants have been issued for Gautam Adani and Sagar Adani, with U.S. prosecutors planning to forward the warrants to foreign law enforcement. None of the defendants are currently in custody.  

The Timeline

The indictment follows a series of controversies for the Adani Group. In January 2023, U.S.-based short-seller Hindenburg Research accused the group of using offshore tax havens improperly, allegations the company denied. Hindenburg’s report triggered a $150 billion loss in the Adani Group's market value.  
Despite the ongoing legal challenges, the Adani Group raised $600 million hours before the indictment was announced by selling 20-year "green" bonds.  

Gautam Adani, 62, is one of the few billionaires to face criminal charges in the United States. He is currently ranked the 22nd-richest person in the world, with a net worth of $69.8 billion, according to Forbes. His business empire spans airports, shipping ports, energy, and mining.  

Adani grew up in Gujarat, India, and dropped out of school at the age of 16. He founded Adani Group in 1988, initially as a commodities trading firm, before expanding into multiple sectors.

Adani's longstanding association with Indian Prime Minister Narendra Modi has fueled political criticism since a long time. Opposition parties have accused PM Modi of shielding Adani from allegations, including those raised by Hindenburg Research.