US charges Gautam Adani in $250 million bribery case; Adani Group denies allegations
Adani Group on Thursday denied allegations of paying bribes to secure favorable terms for solar power contracts, asserting that the charges by US prosecutors are baseless and emphasizing compliance with all laws. The conglomerate stated that it would pursue all possible legal recourse.
"The allegations made by the US Department of Justice and the US Securities and Exchange Commission against directors of Adani Green are baseless and denied," a spokesperson for the group said. The denial follows an indictment unsealed Wednesday in the US, which accuses billionaire Gautam Adani and others of a scheme to pay over USD 250 million (approximately Rs 2,100 crore) in bribes to Indian officials to secure contracts and financing for solar power projects.
The indictment alleges that Adani and his co-defendants misled investors by concealing an alleged bribery scheme facilitating their solar energy project, involving the sale of 12 gigawatts of solar power to the Indian government. US prosecutors claim Adani and his associates duped investors by portraying the project as legitimate while orchestrating corruption to ensure its success. Deputy Assistant Attorney General Lisa Miller described the scheme as one that sought to enrich the defendants "at the expense of the integrity of our financial markets."
Adani and his co-defendants, including his nephew Sagar Adani and former Adani Green CEO Vneet Jaain, have been charged with securities fraud and conspiracy to commit securities and wire fraud. The US Securities and Exchange Commission (SEC) also accused them of violating antifraud provisions of US securities laws, seeking penalties and sanctions in a parallel civil action.
The Adani Group reiterated its commitment to maintaining governance and transparency, pointing to the US Department of Justice's clarification that the charges remain allegations until proven in court. "We assure our stakeholders, partners, and employees that we are a law-abiding organization, fully compliant with all laws," the spokesperson said.
Court filings allege that the bribery scheme began in 2020 or 2021 and involved payments to Indian government officials to secure energy purchase agreements that were vital for the project's profitability. The deals, which were initially unattractive to state-run electricity distributors due to high prices, were reportedly finalized after bribes were offered, allowing Adani Green to secure agreements in five Indian states. These agreements enabled the company to claim the "world's largest" power purchase deal while raising billions of dollars from global investors under false pretenses.
The Adani Group’s clean energy portfolio, which includes one of the world’s largest solar power plants in Tamil Nadu, has been central to its renewable energy ambitions. Last year, Gautam Adani announced plans to invest USD 70 billion in clean energy projects by 2032, aiming to dominate India's renewable energy sector by 2030. Despite the allegations, the group maintains its stance as a proponent of sustainable growth, encapsulated in its slogan, "Growth with Goodness."
The allegations come amid ongoing scrutiny of the Adani Group, which last year faced accusations of "brazen stock manipulation" and "accounting fraud" by US-based Hindenburg Research. While the group dismissed those claims as "stale and baseless," its stock experienced a sharp decline. Prosecutors now allege that the recent bribery charges are part of a broader pattern of financial misconduct, further intensifying pressure on the conglomerate.
Adani’s co-defendants have yet to issue statements, and legal representation for them remains unclear. However, the group remains steadfast in denying all charges, asserting its innocence and commitment to legal and ethical compliance.
