Chairman of Adani Group
Billionaire Gautam Adani, his nephew Sagar Adani, and a senior executive have been charged with securities fraud violations but not with breaching the US Foreign Corrupt Practices Act (FCPA), the Adani Group clarified on Wednesday. The charges, filed by the US Department of Justice (DoJ), allege a scheme to pay $265 million in bribes to secure solar electricity contracts yielding $2 billion over 20 years.
The Adani Group confirmed that the charges include securities fraud conspiracy, wire fraud conspiracy, and securities fraud. In a stock exchange filing, the group emphasized that none of its directors are accused of violating the FCPA.
“The directors Gautam Adani, Sagar Adani, and Vineet Jaain—have not been charged with any FCPA violations. The accusations involve alleged securities-related offenses, punishable by monetary penalties,” the group stated.
The DoJ claims that between 2020 and 2024, Adani Green Energy executives conspired to bribe Indian officials to secure lucrative solar energy supply contracts. The indictment also alleges that the executives misrepresented their anti-bribery practices to US investors and international financial institutions, concealing the bribes to obtain financing for green energy projects.
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The civil complaint, filed by the US Securities and Exchange Commission (SEC), accuses the executives of violating sections of the Securities Act of 1933 and 1934 and aiding Adani Green Energy in similar violations. While it seeks civil monetary penalties, the complaint does not specify the amounts.
The DoJ’s indictment lists five counts, but Gautam Adani and his associates not implicate in two key charges:
Other individuals, including Ranjit Gupta, Cyril Cabanes, and Saurabh Agarwal, charge with these counts.
The allegations have led to a $54 billion loss in market capitalization across Adani Group companies.
Moody’s and Fitch have downgraded their outlook on several Adani firms. Amid this, Adani Green Energy withdrew a $600 million green bond offering, citing investor protection from potential mark-to-market losses.
The Adani Group has dismissed the allegations as baseless and pledged to pursue all legal remedies. “We will defend ourselves vigorously against these charges to ensure justice,” the group stated.
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