Shares of Adani Group companies plummet as US prosecutors accuse Adani and others of paying bribes to secure lucrative solar power contracts

Indian billionaire Gautam Adani has been charged in the United States for his alleged role in a $250 million bribery scheme aimed at securing lucrative solar power contracts in India. The charges, brought by US prosecutors in New York, mark a significant escalation in the scrutiny of Adani’s business dealings, further intensifying the public relations crisis surrounding his conglomerate.

Adani, who chairs the multinational Adani Group, was indicted alongside seven other individuals, including executives from Adani’s energy subsidiaries and former employees of a Canadian pension fund, CDPQ. His nephew, Sagar Adani, is also among the accused. The alleged bribery scheme, which spanned from 2020 to 2024, involved payments made to Indian government officials to secure favourable terms on renewable energy contracts that were projected to generate over $2 billion in profits.

Prosecutors claim that more than $250 million in bribes were offered to officials, and these payments were allegedly concealed from US banks and investors involved in financing Adani’s business ventures. The indictment accuses the defendants of documenting their efforts to conceal the bribes, using mobile phones, PowerPoint presentations, and Excel spreadsheets.

The charges come on the heels of previous allegations leveled against Adani Group by the US short seller Hindenburg Research, which accused the conglomerate of stock market manipulation and accounting fraud. The latest legal troubles have caused a sharp decline in Adani’s stock prices, with Adani Enterprises falling by 20% and the group’s ports business dropping by 16.4% on the Indian stock market.

The US Securities and Exchange Commission (SEC) also filed a parallel civil lawsuit, accusing Adani Green Energy, one of Adani’s renewable energy companies, of misleading US investors by claiming to have an anti-bribery compliance program in place, while, in reality, bribes were being paid to Indian officials to secure above-market energy contracts.

The allegations have sparked political debates in India, with opposition leaders calling for an investigation into Adani’s business practices, particularly his close ties to Prime Minister Narendra Modi. The Indian National Congress party has stated that the US indictment vindicates its demand for a parliamentary probe into Adani’s activities. However, the Indian government has yet to comment on the matter.

Adani, who has built a sprawling business empire across ports, coal, airports, and renewable energy, has been a strong supporter of Modi and his economic policies. In a recent statement, Adani expressed his commitment to investing $10 billion in US energy and infrastructure projects, which he claims would create 15,000 jobs. This announcement was made just weeks before the charges against him were revealed.

The scandal has raised serious questions about the integrity of Adani’s business practices, the role of his connections with the Indian government, and the transparency of his corporate dealings.