Photo: Reuters file

Gautam Adani, the billionaire chairman of Indian conglomerate Adani Group and one of the world's wealthiest individuals, has been indicted in New York for his involvement in a $265-million bribery scheme, as per US prosecutors. Authorities allege that Adani and seven other defendants, including his nephew Sagar Adani, conspired to pay bribes to Indian government officials to secure contracts anticipated to generate $2 billion in profit over 20 years and to develop India's largest solar power plant project. Arrest warrants have been issued for Gautam Adani and Sagar Adani, with prosecutors planning to hand these warrants to foreign law enforcement, according to court records.

The repercussions for the Adani empire were swift. Adani Green Energy canceled plans on Thursday to raise $600 million through US-dollar-denominated bonds, according to four sources with direct knowledge of the matter. The bond, which had been priced, was withdrawn following the news. Adani Green Energy did not immediately respond to a request for comment on the aborted transaction.

In early Asian trading on Thursday, Adani dollar bonds plummeted, with prices falling between 3-5c on bonds for Adani Ports and Special Economic Zone. These declines were the steepest since the Adani Group faced a short-seller attack in February 2023. Prosecutors also claim that the Adanis and another executive at Adani Green Energy, former CEO Vneet Jaain, raised over $3 billion in loans and bonds by concealing their corruption from lenders and investors.

According to the indictment, some conspirators privately referred to Gautam as "Numero uno" and "the big man," while Sagar allegedly used his cellphone to monitor details about the bribes. The Adani Group has not responded to requests for comment on the indictment.

Shares in GQG Partners, an Australia-listed investment firm that is a significant Adani supporter, dropped 20%. This decline marked the stock's largest single-day drop since its listing three years ago. GQG, which last year acquired 3.4% of Adani Enterprises, 4.1% of Adani Ports and Special Economic Zone, 2.5% of Adani Transmission, and 3.5% of Adani Green Energy, stated in a release that it was monitoring the charges.

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