Indian billionaire Gautam Adani, ranked as the 22nd wealthiest person globally with a net worth of $69.8 billion, has been indicted in New York over his alleged involvement in a $250 million bribery scheme aimed at securing lucrative energy contracts in India.
The U.S. Department of Justice (DOJ) accused Adani and other executives of his Indian energy conglomerate of orchestrating a large-scale scheme to pay bribes to Indian government officials in exchange for securing energy supply contracts worth billions of dollars.
The indictment charges the defendants with conspiracy to commit securities and wire fraud, as well as substantive securities fraud.
Prosecutors allege the bribes enabled the company to sell energy to the Indian government at inflated prices, significantly above market rates. The scheme also purportedly involved raising over $750 million through fraudulent means, $175 million of which came from U.S.-based investors.
Simultaneously, the U.S. Securities and Exchange Commission (SEC) filed a complaint against Adani, accusing him of violating federal securities laws by making false and misleading statements to investors and financial institutions to raise capital.
What SEC said
According to the SEC, the executives misled investors about the company’s financial health and business prospects, fabricating information to gain access to funding from international investors, including U.S. institutions.
“The alleged actions not only harmed investors but also undermined the integrity of the market,” the SEC stated in its filing. The agency is seeking civil penalties, disgorgement of ill-gotten gains, and a permanent injunction against Adani and his associates to prevent further violations.
- This indictment poses a significant blow to Adani’s global business empire, which spans energy, infrastructure, and logistics. The allegations could lead to heightened regulatory scrutiny of Adani Group’s operations, particularly in markets where it has sought foreign investment.
- Despite the legal troubles, Adani retains significant wealth, just behind Francoise Bettencourt Meyers of L’Oréal, whose net worth is estimated at $70.8 billion.
- The case shows growing concerns about corporate governance and transparency within Indian conglomerates seeking to expand their global footprint. It also highlights the increasing willingness of U.S. regulators to pursue cross-border cases involving high-profile individuals accused of defrauding American investors.
- As the legal proceedings unfold, the implications for both the Adani Group and its founder’s reputation are likely to reverberate across international markets.
As of now, Adani and the Indian Energy Company have not publicly commented on the charges. However, the indictment threatens to disrupt the billionaire’s operations and tarnish his global reputation.