Indian billionaire Gautam Adani has been indicted by US prosecutors for allegedly conspiring with executives of a formerly New York-listed company to orchestrate a $265 million bribery scheme aimed at Indian officials to bolster their solar energy business. The Adani Group has vehemently denied these allegations as "baseless," while Indian government officials have remained silent on the matter. Here’s a summary of the investigation and the allegations outlined in the US indictment:
What are the primary allegations? US prosecutors have charged Gautam Adani, his nephew Sagar Adani (a director at Adani Green), and six others with bribery and fraud related to renewable energy projects in India that allegedly benefited both Adani's company and India's Azure Power, which was listed on the NYSE until late 2023. According to the unsealed indictment, executives from Adani Green and Azure knowingly conspired to offer and pay bribes to Indian government officials to secure business advantages. Adani and his executives are also accused of making false statements to US investors and lenders about the company's anti-bribery commitments and practices while raising over $3 billion between 2021 and 2024.
How were bribes tracked and paid? Sagar Adani, executive director of Adani Green and nephew of Gautam Adani, allegedly used his mobile phone to document the bribes offered to Indian officials. In a 2022 meeting, Gautam Adani reportedly detailed the bribery scheme, including steps he personally took to offer money to government officials. Azure executives also prepared an analysis to summarize how they could repay Adani Green for the bribes, with one project's bribe calculated at around $30,000 per megawatt.
What were the power projects in question? US authorities referred to the dealings as "The Corrupt Solar Project." Between 2019 and 2020, Adani Green and Azure were awarded renewable energy tenders by the Solar Energy Corporation of India (SECI), a federal government-owned entity. The project involved constructing solar plants in several Indian states. US authorities allege that Adani and others devised a scheme to bribe Indian state government officials to enter into agreements with SECI, benefiting Adani subsidiaries and Azure.
How did US Federal agents investigate and seize evidence? In March 2023, FBI special agents approached Sagar Adani with details of the grand jury's ongoing investigation. They took custody of electronic devices in Sagar's possession and served him with a search warrant and grand jury subpoena. The search warrant identified offenses, individuals, and entities under investigation for violations of the Foreign Corrupt Practices Act, securities fraud, and wire fraud.
What's next for the Adani Group? The Adani Group has stated it will pursue "all possible legal recourse." Indian lawyers suggest the matter could be settled between Adani and US authorities, or the billionaire could seek a dismissal of the indictment. Since an arrest warrant has been issued, US authorities would need to approach the Indian government through the Indian embassy to execute it. The grand jury has ordered that if any executives are found guilty, they must forfeit any property or proceeds derived from the offenses.
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