The Adani Group, a massive conglomerate with interests spanning ports, energy, and infrastructure, is facing fresh scrutiny following a U.S. indictment alleging a $265 million bribery scheme to secure favorable power deals. The charges, which include fraud and misleading disclosures, have raised alarms over the group’s corporate governance and transparency.
In March 2023, Sagar Adani, a top executive within the group, was served a search warrant by the FBI, alongside a subpoena and the seizure of electronic devices. Despite this, the Adani Group publicly denied any knowledge of U.S. investigations, maintaining that its governance practices were above reproach. These latest revelations, made public by U.S. authorities, cast doubt on those claims, suggesting that the Adanis not only concealed the bribery scheme but also misled investors and regulatory bodies about the company’s anti-corruption policies.
The indictment implicates Sagar and Gautam Adani, the 62-year-old billionaire and chairman, along with several other group members. Prosecutors allege that they engaged in a coordinated effort to falsely assure financial institutions and investors about the group’s adherence to anti-bribery laws, while simultaneously participating in the bribery operation.
The Adani Group, valued at $143 billion, has long touted its commitment to best-in-class corporate governance. However, the indictment outlines multiple instances of “false and misleading” statements made in official reports and disclosures, some of which were sent to U.S. investors. Adani Green, one of its key firms, allegedly misrepresented its anti-corruption practices in annual reports from 2021 to 2024.
These disclosures come amid a challenging period for the Adani Group, which has already been under fire since the 2023 Hindenburg report accused it of mismanagement and using tax havens—allegations the company has vehemently denied. The group has dismissed all claims of wrongdoing, calling them “baseless.”
Despite the group’s denials, India’s market regulator, SEBI, is reportedly reviewing the situation to determine whether the Adani Group violated local disclosure laws. Some experts argue that SEBI should take further action by issuing a show-cause notice to the group over its failure to properly disclose material information.
The allegations are drawing renewed attention to the standards of corporate governance at one of India’s most influential business empires. As legal battles unfold, questions about transparency and accountability within the Adani Group continue to loom large.
