A whirlwind of accusations has engulfed Indian billionaire Gautam Adani, as U.S. authorities unveil charges implicating him and his nephew, Sagar Adani, in a $265 million bribery scheme designed to sway Indian officials. The indictment, announced by federal prosecutors, targets the business tycoon and seven others, marking a dramatic chapter in the ongoing scrutiny of Adani’s sprawling conglomerate.
The allegations paint a stark picture: bribes to secure lucrative energy contracts projected to yield $2 billion in profits over two decades and the development of what would be India’s largest solar power project. These contracts were tied to Adani Green Energy, a linchpin of the group, which now faces the fallout of scrapped bond deals and plummeting valuations.
Shares across the Adani Group tumbled, erasing $20 billion from the conglomerate’s market value in a single day. Adani Green Energy alone saw a 16% decline, while bond prices for affiliated companies, including Adani Ports, slid by 3-5%.
From “Numero Uno” to Indictment
Prosecutors revealed internal code names like “Numero Uno” and “The Big Man,” used by conspirators to reference Gautam Adani, while Sagar Adani reportedly monitored bribes through his phone. Alongside charges of securities fraud, wire fraud conspiracy, and violations of U.S. anti-bribery laws, the unsealed documents highlight the lengths to which the accused allegedly went to conceal the scheme.
The fallout is seismic. Adani Green Energy canceled a $600 million bond issuance, while other financial deals linked to the group are under scrutiny. Meanwhile, U.S. authorities have issued arrest warrants for Gautam and Sagar Adani, signaling intentions to pursue extradition.
Denials and Political Repercussions
In response, the Adani Group dismissed the allegations as “baseless” and pledged to fight back through legal channels. The developments have reignited political controversy in India, with opposition parties demanding a parliamentary investigation into alleged favoritism and corporate misconduct.
Prime Minister Narendra Modi’s administration, already under fire for perceived close ties to Adani, faces renewed criticism. Modi and Adani, both hailing from Gujarat, have long denied claims of impropriety, but the charges cast a long shadow.
Global Implications
Beyond India’s borders, the impact is being felt in investment circles. Australia-listed GQG Partners, a significant Adani backer, saw its stock nosedive by 20%. The indictment also includes claims involving Azure Power, a company previously traded on the New York Stock Exchange, deepening the scandal’s international dimensions.
As investigations unfold, the Adani empire, once a beacon of meteoric rise, faces one of its gravest crises yet, with global investors and regulators closely watching the next moves.
