Indian billionaire Gautam Adani charged in US bribery scandal
The news of the charges hit the Adani Group hard.
Gautam Adani, chairman of Adani Group, faces charges in a $265 million bribery case. His empire is shaken, with major financial impacts following the indictment.
US prosecutors say Adani and his nephew, Sagar Adani, along with other people in the Adani Group, paid bribes to Indian government officials.
These bribes were meant to secure contracts that would bring in a huge profit. The contracts were linked to a project to develop India’s largest solar power plant, which was expected to earn $2 billion over the next 20 years.
According to court records, US authorities have issued arrest warrants for Gautam Adani and his nephew Sagar Adani. These warrants will be handed over to law enforcement in other countries to help catch them. The charges include securities fraud, conspiracy, and wire fraud.
The case also involves another top figure in Adani Group, Vneet Jaain, the former CEO of Adani Green Energy. Prosecutors say that the Adanis and Jaain raised over $3 billion in loans and bonds.
However, they did so by hiding their corrupt actions from investors and lenders. This means they misled people and companies about the true nature of their business deals.
The news of the charges hit the Adani Group hard.
The group had already suffered a major blow in February 2023 when short-seller attacks caused the value of its stocks to drop. This time, shares in Adani’s companies fell by 10% to 20%, causing huge losses for investors.
In addition to these losses, Adani Green Energy had to cancel a plan to raise $600 million in bonds. The value of Adani's dollar bonds also dropped by 3-5 cents. This was the largest drop in bond prices since the short-seller attack in February 2023.
The indictment revealed that some people involved in the bribery scheme referred to Gautam Adani with code names like "Numero uno" and "the big man". Sagar Adani reportedly used his mobile phone to track specific details about the bribes.
The Adani Group has not commented on the charges. However, this scandal has shaken the group’s reputation. The company is facing not only legal issues but also financial trouble, as seen in the drop in stock prices.
Gautam Adani, 62, is one of the wealthiest people in the world, with a net worth of $69.8 billion, according to Forbes magazine. He has long been seen as a symbol of business success in India. However, being formally charged with criminal wrongdoing in the US is a major blow to his image.
The charges are also creating problems for other businesses linked to Adani. GQG Partners, an Australian investment firm, is one of the major investors in Adani companies.
After the indictment, shares of GQG Partners fell by 20%, the biggest drop in the company’s history. GQG had invested in several of Adani’s firms, including Adani Enterprises, Adani Ports, Adani Transmission, and Adani Green Energy. The firm has said it is monitoring the situation closely.
This legal case could have lasting effects on Adani Group, especially in international markets. It also serves as a reminder that no matter how big or successful a company may be, legal issues and scandals can bring it down quickly.
While Gautam Adani is believed to be in India, the US authorities are continuing their investigation. They have made it clear that they plan to hold all the accused individuals accountable for their actions.