Gautam Adani, one of India’s wealthiest and most influential businessmen, now finds himself at the center of a storm. U.S. authorities have charged him and several associates in connection with an alleged $265 million bribery scheme, casting a shadow over his global conglomerate, the Adani Group.
The charges stem from power supply deals in India, specifically within the “Corrupt Solar Project,” and came to light as Adani Group raised significant capital from U.S. investors beginning in 2021. Adani, however, has categorically denied any wrongdoing. The company claims the allegations are unfounded and is determined to exhaust every possible legal avenue to clear its name.
While Adani Group’s CFO pointed to a specific contract under the Adani Green Energy arm, which constitutes a small portion of its operations, the scandal is far-reaching. It has sparked fresh scrutiny not only of the Adani Group but also of Sagar Adani, a rising figure in the company, who allegedly tracked bribe payments in a series of “bribe notes.”
The indictment has set off a ripple effect, impacting the financial and political landscape. U.S. regulators allege the company made false disclosures regarding their knowledge of the ongoing investigation, deepening the crisis. As a result, Adani’s debt and stock prices have been under intense pressure, with credit agencies like Fitch and Moody’s downgrading their outlook for the company.
On the global stage, the scandal has led to a series of setbacks: lenders have begun to reconsider their relationship with the Adani Group, while French oil giant TotalEnergies has suspended further investments. Kenya has canceled major Adani infrastructure deals worth billions, and the U.S. is reviewing its involvement in Adani’s Sri Lankan port project. Back in India, Andhra Pradesh is even considering suspending a major power purchase agreement with the group.
The legal battle looms large. Adani faces serious charges, including foreign bribery, securities fraud, and wire fraud conspiracy. Though not arrested, his whereabouts remain unclear, and it is uncertain how soon the trial will proceed. If convicted, the ramifications could include lengthy prison terms and significant financial penalties.
For now, all eyes are on the coming legal proceedings, and the clock is ticking as Adani has just 21 days to respond to U.S. Securities and Exchange Commission allegations. What happens next could redefine the future of one of India’s most prominent business empires.
