Indian entrepreneur Gautam Adani, one of the world’s richest people, has been charged in the United States for allegedly deceiving investors by hiding a bribery scheme linked to a major solar energy project in India.
Federal prosecutors in New York announced the indictment on Wednesday, accusing Adani of securities fraud and conspiracy to commit wire fraud. The case involves Adani Green Energy Ltd. and a deal to provide 12 gigawatts of solar power to the Indian government, enough to power millions of homes and businesses.
According to the indictment, Adani and his co-defendants misled US investors about the project’s integrity, securing billions of dollars over five years. Prosecutors allege that $265 million in bribes were planned to be paid to Indian government officials to win contracts and financing.
Lisa Miller, Deputy Assistant Attorney General, said, “The defendants sought to secure massive state energy supply contracts through corruption and fraud, harming US investors in the process.”
US Attorney Breon Peace added, “This scheme was designed to enrich the defendants while undermining the integrity of our financial markets.”
The US Securities and Exchange Commission (SEC) has also filed a civil lawsuit against Adani, accusing him and two others of violating antifraud provisions in US securities laws. The SEC is seeking monetary penalties and other sanctions.
Sanjay Wadhwa, acting director of the SEC’s Enforcement Division, said, “Gautam and Sagar Adani falsely claimed that Adani Green Energy had a strong anti-bribery compliance programme, misleading investors into buying bonds.”
Adani’s nephew, Sagar Adani, a director on the board of Adani Green Energy, and Vneet Jaain, the company’s former CEO, are named as co-defendants.
Gautam Adani built his fortune in the coal industry during the 1990s. His conglomerate, the Adani Group, now operates in various sectors, including defence, road construction, and cooking oil.
In recent years, the Adani Group has invested heavily in renewable energy, aiming to lead India’s green energy sector by 2030. In 2022, Adani announced plans to invest $70 billion in clean energy projects by 2032.
