- Gautam Adani, chairman of Adani Group, faces U.S. bribery charges in a $265 million scandal.
- Arrest warrants were issued for Adani and his nephew, Sagar Adani, with international enforcement plans.
- Allegations include bribing Indian officials to secure $2 billion in contracts over 20 years.
- Immediate fallout: Bond cancellations, stock slumps, and investor concerns.
- U.S. prosecutors claim Adani raised $3 billion in loans while concealing corruption.
A Billionaire in the Dock
Gautam Adani, one of the world’s wealthiest individuals and chairman of India’s Adani Group, has been charged in New York for his alleged involvement in a $265 million bribery scheme. U.S. prosecutors accuse Adani and seven others, including his nephew Sagar Adani, of bribing Indian officials to win lucrative solar power contracts.
The contracts, reportedly set to generate $2 billion in profits over two decades, were intended to develop India’s largest solar power project. Court documents reveal that arrest warrants have been issued for Gautam Adani and Sagar Adani, with plans to involve international law enforcement.
Immediate Fallout
The news sent shockwaves through the Adani empire. Adani Green Energy shelved a $600 million bond offering that had already been priced. Sources indicate the bond sale was pulled due to the indictment.
Additionally, Adani dollar bonds plummeted by 3-5 cents during early Asian trading, marking the most significant decline since a 2023 short-seller attack on the conglomerate. Shares in GQG Partners, a major Australian investor in Adani Group, dropped by 20%, the steepest one-day decline in its history.
GQG Partners, which holds stakes in several Adani companies, issued a statement saying it was closely monitoring the developments.
The Allegations
According to the indictment, Adani and his associates raised over $3 billion in loans and bonds, hiding their corrupt dealings from investors and lenders. Prosecutors claim that Gautam Adani was referred to as “Numero Uno” or “the big man” in coded communications, while Sagar Adani allegedly managed bribes through his cellphone.
Former Adani Green Energy CEO Vneet Jaain has also been implicated in the scandal. Despite requests for comments, Adani Group has remained silent on the allegations.
Political Ties and Controversies
The indictment has reignited discussions about Gautam Adani’s political connections, particularly with Indian Prime Minister Narendra Modi. Critics have long accused Adani of benefiting from his ties to the government, a claim he has consistently denied.
Interestingly, the charges emerge just weeks after Donald Trump’s election as U.S. President. Adani had publicly congratulated Trump and announced plans to invest $10 billion in the U.S., raising questions about the timing of the indictment.
Gautam Adani’s legal troubles mark a significant setback for the billionaire and his global business empire. As investigations unfold, the scandal threatens to impact investor confidence and the future of one of India’s largest conglomerates.
