Indian billionaire Gautam Adani and seven of his associates were indicted by a New York court on Wednesday in a long-running, multi-million dollar fraud and bribery case. The case relates to contracts for setting up a large solar power plant in western India.
According to a statement by the US Department of Justice (DOJ), Gautam Adani, who is believed to be close to Indian Prime Minister Narendra Modi, and other senior officials, including his nephew Sagar Adani, conspired to obtain solar power project contracts by paying more than $250 million in bribes to Indian government officials from 2020 to 2024. It is alleged to have been composed.
The allegations led to a sharp fall in the stock market value of Adani group companies. Share prices of the group’s listed companies fell by 10% to 20% on Thursday, shedding more than $30 billion in market value.
State case making:
Due to these developments, the political atmosphere has heated up in India as well, with the opposition party Congress criticizing the BJP government led by Prime Minister Narendra Modi and demanding a parliamentary inquiry into the affairs of the Adani group.
According to the DOJ, the bribery scheme would have generated more than $2 billion in after-tax profits from the solar power supply contracts. The charge sheet states that Adani personally met with a government official and furthered the scheme.
Reactions and evidence in America:
DOJ Deputy Assistant Attorney General Lisa Miller said, “This case alleges more than $250 million in bribes, defrauding banks and investors, and obstruction of justice.”
The Adani Group, however, denied all the allegations, saying in a statement, “We have always been transparent and law-abiding. We assure our partners, employees and investors that the Adani Group operates legally.”
Financial crisis and investor losses:
The allegations have also affected the group’s solar power project, Adani Green. The group announced that it has suspended its $600 million bond sale plan. The US Securities and Exchange Commission (SEC) has also accused Adani Group and Azure Power Global executives of fraud.
The group was already in trouble in 2023 when Hindenburg Research accused the Adani group of “fraud and stock market manipulation.” After that, Adani’s fortunes were reduced by more than $80 billion.
Gautam Adani’s journey:
Gautam Adani started his career in the diamond business. In 1988, he founded Adani Enterprises, which today operates in diverse sectors such as power, ports, media and clean energy.
The allegations pose a new crisis for the Adani group, which is likely to have ramifications for Indian politics and the economy