Billionaire Gautam Adani charged by US (Securities & Exchange Commission) SEC in alleged bribery scheme.
The US Securities and Exchange Commission (SEC) has filed charges against Gautam Adani, Adani Group’s founder and chairman, alleging securities fraud and bribery. The SEC has initiated enforcement action against Gautam Adani.
The charges are related to alleged violations of federal securities laws.
US Files Bribery and Fraud Charges Against Billionaire Gautam Adani
Billionaire industrialist Gautam Adani and several associates face serious allegations in the US, with authorities claiming involvement in a $250 million bribery scheme aimed at securing lucrative government contracts in India. These accusations, if proven, could have significant legal and reputational consequences for Adani and his business empire.
Details of the Allegations
The US Securities and Exchange Commission (SEC) has accused Adani, the 62-year-old founder of the Adani Group, along with his nephew Sagar Adani, 30, and others, of defrauding American investors. According to the SEC, the alleged scheme was designed to secure multi-billion-dollar contracts for renewable energy projects through bribery and false statements to investors.
The charges extend to executives from Adani Green Energy Ltd and Cyril Cabanes, an executive from Azure Power Global Ltd, a company listed on the New York Stock Exchange. Both companies are accused of benefiting from the scheme, which involved falsified disclosures and bribes paid to Indian government officials to win contracts in the solar energy sector.
SEC Actions and Federal Indictments
The SEC has filed civil charges citing violations of anti-fraud provisions under federal securities laws. The regulator is seeking penalties, permanent injunctions, and leadership bans against the accused individuals. Adani Green Energy reportedly raised over $175 million from American investors, while Azure Power also received significant investment during this period.
Adding to the civil allegations, the US Attorney’s Office for the Eastern District of New York has unsealed criminal charges against Gautam Adani, Sagar Adani, Cyril Cabanes, and others. The indictment accuses them of conspiring to violate the Foreign Corrupt Practices Act. It alleges that between 2020 and 2024, the group paid over $250 million in bribes to secure solar energy contracts with projected profits of over $2 billion spread across two decades.
Focus on Solar Energy Projects
The bribery scheme reportedly targeted one of the world’s largest solar energy initiatives, backed by the Indian government. Authorities claim the Adani Group’s renewable energy companies used these contracts to boost their global profile and attract investments from international financial institutions.
Implications for Adani
The allegations against Adani and his associates have raised questions about corporate governance within the Adani Group, a conglomerate with interests spanning energy, infrastructure, and logistics. While Adani Green Energy has yet to respond publicly to the charges, the case could damage investor confidence in the group, especially given its extensive reliance on foreign investment to fund its projects.
Broader Impact
The SEC’s actions emphasize the agency’s commitment to protecting American investors from fraudulent practices involving global corporations. If the allegations are substantiated, this case could result in significant penalties and leadership bans for those involved, potentially reshaping the operations of Adani Green Energy and Azure Power on a global scale.
