Indian Tycoon Gautam Adani Faces Fraud Charges in the U.S.
Indian billionaire Gautam Adani has been accused of fraud by U.S. authorities, who claim he orchestrated a $250 million (£198 million) bribery scheme to secure government contracts while concealing the activity to raise funds in the U.S.
The charges, filed in New York on Wednesday, mark another setback for the 62-year-old industrialist, whose vast business empire spans sectors such as ports, airports, and renewable energy.
According to prosecutors, Adani and senior executives allegedly approved payments to Indian officials to obtain renewable energy contracts projected to generate over $2 billion in profits over two decades.
The Adani Group has not issued a statement regarding the allegations, and requests for comment have gone unanswered.
The news had an immediate financial impact, with Adani Group stocks plunging by more than 10% during Thursday morning trading. The group reportedly lost about $30 billion in market value. Adani Green Energy, the firm at the center of the accusations, also announced the cancellation of a planned $600 million bond issuance.
The U.S. investigation into the Adani Group has been ongoing since 2022, but reports of a bribery inquiry had surfaced months earlier. Prosecutors accuse executives of raising $3 billion through loans and bonds—some from U.S.-based firms—while making false claims about the company’s anti-bribery policies and concealing the bribery probe.
U.S. Attorney Breon Peace stated that the defendants “devised a sophisticated scheme to bribe Indian officials to obtain lucrative contracts” and misled investors to secure financing from global and U.S. investors. Peace emphasized the Justice Department’s commitment to combatting corruption and protecting the integrity of financial markets.
The charges also reveal that Adani personally met with Indian government officials on multiple occasions to advance the scheme.
This development is a significant blow to Adani, who has spent the past two years trying to rebuild his reputation following allegations by a U.S.-based research firm in 2023. Although Adani denied those claims, they triggered a substantial market sell-off at the time.
Michael Kugelman, director of the South Asia Institute at the Wilson Center, described the charges as a severe setback for Adani, noting that allegations from the U.S. Justice Department could be more challenging to overcome compared to earlier claims.
Adani’s political connections have also drawn attention. A known ally of Indian Prime Minister Narendra Modi, Adani has frequently faced accusations from opposition parties suggesting his businesses have benefited from these ties, allegations he has consistently denied.
Adding a political twist, the U.S. Attorney’s Office, responsible for filing the charges, operates under appointments made by the president. The charges were announced just weeks after Donald Trump’s presidential victory, with Trump promising significant changes within the Justice Department.
Interestingly, Adani had publicly congratulated Trump on his election win days earlier and pledged to invest $10 billion in the U.S., raising questions about the timing and potential political implications of the charges.