Billionaire Gautam Adani charged in US over alleged $250 million bribery plot; details of charges here
By Sunita Iyer | First Published Nov 21, 2024, 7:40 AM ISTThe US SEC has charged billionaire Gautam Adani, founder and chairman of the Adani Group, along with several associates, with allegedly defrauding American investors and engaging in a bribery scheme involving renewable energy projects in India.
The US Securities and Exchange Commission (SEC) has filed charges against Gautam Adani, the billionaire founder and chairman of the Adani Group, accusing him of defrauding American investors and engaging in a bribery scheme.
Adani, 62, along with his nephew Sagar Adani, 30, executives from Adani Green Energy Ltd, and Cyril Cabanes, an executive at Azure Power Global Ltd, has been charged with conspiracy to commit securities and wire fraud, as well as substantive securities fraud.
BREAKING: Gautam Adani and 7 other executives criminally indicted in the U.S. over $250 million in alleged bribes.
The SEC has filed parallel charges in the “massive bribery scheme”.https://t.co/uWULHHI7Ab
Allegations of bribery and fraud
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The charges relate to an alleged multi-billion-dollar scheme involving the acquisition of funds from Us investors and global financial institutions through false and misleading statements.
According to the SEC, the bribery scheme was designed to benefit renewable energy companies Adani Green and Azure Power by securing a multi-billion-dollar solar energy project awarded by the Indian government.
The complaint accuses the defendants of violating the antifraud provisions of federal securities laws and seeks remedies including permanent injunctions, civil penalties, and bans on serving as officers or directors.
The SEC stated that during the alleged scheme, Adani Green secured over $175 million from US investors, while Azure Power’s stock was actively traded on the New York Stock Exchange.
“As alleged, the defendants orchestrated an elaborate scheme to bribe Indian government officials to secure contracts worth billions of dollars and Gautam S. Adani, Sagar R. Adani and Vneet S. Jaain lied about the bribery scheme as they sought to raise capital from US and international investors,” stated United States Attorney Peace. “My Office is committed to rooting out corruption in the international marketplace and protecting investors from those who seek to enrich themselves at the expense of the integrity of our financial markets.”
Criminal charges unsealed
Simultaneously, the US Attorney’s Office for the Eastern District of New York revealed criminal charges against Gautam Adani, Sagar Adani, Cyril Cabanes, and others associated with Adani Green and Azure Power.
A federal indictment, unsealed in a Brooklyn court, also implicates five additional individuals in a conspiracy to violate the Foreign Corrupt Practices Act, tied to a bribery scheme involving one of the world’s largest solar energy projects.
Prosecutors allege that between 2020 and 2024, Adani and his associates paid over $250 million in bribes to secure solar energy contracts projected to generate over $2 billion in after-tax profits over a 20-year period.
Gautam Adani and seven other executives have been accused of bribing Indian government officials to secure high-value contracts and misleading investors by making false statements regarding bribery and corruption.
"Gautam S. Adani and seven other business executives allegedly bribed the Indian government to finance lucrative contracts designed to benefit their businesses. Adani and other defendants also defrauded investors by raising capital on the basis of false statements about bribery and corruption, while still other defendants allegedly attempted to conceal the bribery conspiracy by obstructing the government’s investigation,” stated FBI Assistant Director in Charge Dennehy. “The FBI maintains its steadfast mission to expose all corrupt agreements, especially with international governments, and protect investors from related harm.”
“This indictment alleges schemes to pay over USD 250 million in bribes to Indian government officials, to lie to investors and banks to raise billions of dollars, and to obstruct justice,” stated Deputy Assistant Attorney General Lisa H Miller.
“These offences were allegedly committed by senior executives and directors to obtain and finance massive state energy supply contracts through corruption and fraud at the expense of US investors," she added.
The Department of Justice alleges that Gautam Adani personally met with an Indian government official on multiple occasions to further the bribery scheme. The defendants are also accused of holding in-person meetings to plan and coordinate its execution.
“The defendants frequently discussed their efforts in furtherance of the Bribery Scheme, including through an electronic messaging application," it alleged.
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