Indian billionaire Gautam Adani and several executives have been indicted in New York by US prosecutors for their alleged involvement in a multi-billion-dollar fraud scheme related to the development of a major solar power plant. The Department of Justice stated that Adani and seven other executives, including his nephew Sagar Adani, are accused of offering over $250 million in bribes to Indian government officials to secure solar energy contracts.
The impact of these allegations has reverberated across Adani's conglomerate, with shares in the group's listed firms experiencing significant declines. The allegations have also sparked political repercussions in India, with calls for a parliamentary investigation into Adani's companies.
The Department of Justice alleges that the solar energy contracts in question were expected to generate more than $2 billion in profits over a 20-year period. Adani, aged 62, is said to have personally met with an Indian government official to advance the scheme between 2020 and 2024.
US authorities claim that Adani and his associates attempted to conceal the bribery schemes from US investors to secure financing for the solar energy contracts procured through bribery. The Securities and Exchange Commission has also charged Adani and his associates for the bribery scheme, which allegedly allowed the companies to benefit from a lucrative contract with the Indian government.
These developments come after previous allegations of stock manipulation and accounting fraud against the Adani Group by a US short-seller in 2023. The billionaire's fortune suffered a significant decline following these accusations.
Adani, who began his career in diamond trading, has built a vast business empire spanning sectors such as ports, power, media, and clean energy. The Adani Group has been working to restore its reputation following the previous allegations made against them.
