Indian billionaire Gautam Adani, one of the wealthiest individuals in the world and chairman of the Adani Group, has been charged in the US with fraud, accused of orchestrating a $250 million (£198m) bribery scheme to secure funds from American investors.
The criminal charges, filed on Wednesday in New York, represent another setback for the 62-year-old industrialist, whose business empire spans energy, infrastructure, and renewable energy.
Adani’s rapid rise in global wealth rankings has often been accompanied by allegations of controversial business practices.
The lawsuit accuses Adani and senior executives of engaging in:
- Misrepresentation of Financial Information: Allegedly inflating revenues or concealing liabilities to attract investors.
- Market Manipulation: Using shell companies or insider trading to control stock prices.
- International Money Laundering: Transferring funds across jurisdictions to avoid detection.
The Prosecutors also claim that Adani and his associates bribed Indian officials to secure renewable energy contracts expected to generate more than $2 billion in profits over two decades.
The US investigation reportedly began in 2022, with prosecutors accusing Adani Group executives of obstructing the inquiry.
They allege that the group raised $3 billion in loans and bonds, including from US firms, through false and misleading statements about anti-bribery practices and the ongoing probe.
US Attorney Breon Peace stated, “The defendants orchestrated a sophisticated scheme to bribe Indian government officials to secure contracts worth billions and misrepresented the scheme as they sought to raise capital from U.S. and international investors.”
The charges also place scrutiny on Adani’s close partners and subsidiaries, raising concerns about broader regulatory gaps in India and the influence of billionaires in its political landscape.
The US Securities and Exchange Commission (SEC) and Department of Justice (DOJ) may intensify their focus on the case.
The Adani Group, which has historically denied allegations of wrongdoing, has not yet responded to the charges.
The conglomerate has previously attributed controversies to external conspiracies and attacks on its reputation.
This legal blow follows a turbulent period for Adani. In 2023, a high-profile report accused his conglomerate of fraud, triggering a significant market sell-off.
The latest charges also coincide with Donald Trump’s return to the US presidency.
Trump’s promises to overhaul the Justice Department have raised questions about the timing of the indictment.
Adani’s personal connections have also drawn attention.
Known as a close ally of Indian Prime Minister Narendra Modi, he has faced long-standing accusations from opposition politicians of benefiting from political ties claims he denies.
These charges could tarnish Adani’s reputation further and pose challenges to the Adani Group’s international operations.
Last week, Adani announced plans to invest $10 billion in the US while congratulating Trump on his election victory, moves that may now be under scrutiny.
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