US charges Gautam Adani and associates in $2 billion bribery scheme over solar contracts

Billionaire Gautam Adani, along with seven other individuals, has been charged by the US Department of Justice in connection with a multi-million-dollar bribery scheme. The charges allege that Adani and his associates paid bribes to government officials in the Indian states of Andhra Pradesh and Odisha. The objective of these payments was reportedly to secure contracts for the purchase of expensive solar power, which could have generated over $2 billion for the Adani Group over the next two decades.

The charges are civil and criminal in nature, and they include serious allegations of conspiracy, securities fraud, and wire fraud. In addition to Gautam Adani, his nephew Sagar Adani and Vneet S Jaain, the former CEO of Adani Green Energy, are among those indicted. The charges suggest that the accused misled investors and secured funds based on false statements about the deals and their legitimacy. These actions reportedly misrepresented the financial health of the company and misled the public and investors about its prospects.

In a detailed explanation, the US Department of Justice outlined that the alleged bribes were intended to secure contracts for solar energy, which are considered high-value deals. This has raised questions about corruption and business ethics within one of India’s largest conglomerates. Along with Adani and his associates, executives from Azure Power Global and former employees of a Canadian institutional investor are also facing charges under the Foreign Corrupt Practices Act. This act prohibits bribes to foreign officials in exchange for business advantages.

The US Securities and Exchange Commission (SEC) has added its charges against Adani and his nephew, accusing them of violating anti-fraud provisions of federal securities laws. According to the SEC, these actions amounted to deceptive practices, misleading investors, and violating the public trust. The charges underscore the serious nature of the allegations, which could have broad implications for the Adani Group’s international operations.

Ravi Batra, an Indian-American attorney, discussed the potential legal consequences, noting that US Attorney Breon Peace has the authority to issue arrest warrants against the accused individuals. He explained that if the accused individuals reside in countries with which the US has an extradition treaty, such as India, the nation could be obligated to cooperate in their transfer for trial. According to Batra, extradition is generally a standard procedure unless exceptional circumstances arise, citing rare instances where extradition requests are denied.

Despite the severity of the charges, the Adani Group has strongly denied all allegations, calling them “baseless.” The company asserts that it fully complies with all relevant laws and regulations. As the legal proceedings continue, the Adani Group has vowed to contest the charges in court. Meanwhile, US authorities are pursuing legal action against the accused individuals in an effort to hold them accountable for their alleged involvement in the bribery scheme.