The U.S. Department of Justice (DoJ) has unsealed a five-count criminal indictment against Gautam Adani, chairman of the Adani Group, along with several business associates. The charges include allegations of offering over $250 million in bribes to Indian government officials to secure solar energy contracts, conspiring to commit securities and wire fraud, and orchestrating what prosecutors describe as a “multi-billion-dollar scheme” to deceive U.S. investors and global financial institutions through “false and misleading statements.” The indictment was made public by the U.S. Attorney’s Office for the Eastern District of New York on November 20, 2024.
In a related action, the U.S. Securities and Exchange Commission (SEC) filed a civil complaint against Gautam Adani, Sagar Adani (his nephew and head of Adani Green Energy), and Cyril Cabanes, a senior executive at Azure Power Global Limited—a New Delhi-based renewable energy firm previously listed on the New York Stock Exchange. The SEC accuses the trio of engaging in a large-scale bribery scheme involving Adani Green and Azure Power.
Criminal and Civil Allegations
The DoJ’s criminal case targets a broad spectrum of alleged misconduct, while the SEC’s civil action seeks remedies including a permanent injunction, financial penalties, and bans on serving as officers or directors of public companies. The SEC complaint has been filed in the U.S. District Court for the Eastern District of New York.
The charges, spanning 2020 to 2024, implicate Gautam Adani, Sagar Adani, Vneet S. Jaain (former CEO of Adani Green Energy), Ranjit Gupta (former CEO of Azure Power), Cyril Cabanes, and former executives from CDPQ, a Canadian pension fund that was a major shareholder in Azure Power. Key accusations include bribery of foreign officials, obstructing federal investigations, destroying electronic evidence, and concealing illicit activities in corporate filings.
Market Fallout and Adani Group’s Response
Following these revelations, Adani Green Energy withdrew its planned $600 million dollar bond offering. The Adani Group’s companies collectively lost $28 billion in market value during trading on November 21, 2024, marking the steepest decline since February 2023 when allegations from Hindenburg Research first surfaced.
The Adani Group has categorically denied the allegations, labeling them “baseless.” A company spokesperson emphasized, “As stated by the U.S. Department of Justice, the charges are allegations, and the defendants are presumed innocent unless proven guilty. The Adani Group remains committed to the highest standards of governance, transparency, and regulatory compliance across all jurisdictions.”
Legal Framework and Implications
The indictment invokes the U.S. Foreign Corrupt Practices Act (FCPA) of 1977, which criminalizes bribery of foreign officials to secure business deals. Violations of the FCPA, combined with securities fraud and obstruction of justice, carry severe penalties. The charges highlight alleged misconduct, including misleading investors about corporate governance practices, tampering with investigations, and falsifying corporate disclosures.
This case marks a significant escalation in scrutiny of global corporate practices, with potential implications for investor confidence in international markets. The legal proceedings could serve as a litmus test for accountability in multinational corporate governance.
