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The United States has officially charged Indian billionaire Gautam Adani with orchestrating a $265 million bribery scheme.
What’s the deal: According to the Department of Justice, Gautam Adani, one of the world’s wealthiest individuals and a prominent Indian businessman, is at the center of a massive bribery scheme aimed at securing multi-billion-dollar renewable energy contracts in India. Adani, whose business empire spans industries from ports to renewable energy, allegedly orchestrated payments totaling $265 million to Indian government officials to influence state-owned electricity distributors into purchasing solar power at inflated prices. Prosecutors claim that the scheme was concealed from international investors as Adani and his associates raised over $3 billion in capital based on false claims of compliance with anti-bribery practices. Evidence, including internal spreadsheets and presentation slides, outlines the bribes’ specifics, with Adani himself allegedly meeting officials to advance the plan.
So why is the US involved? According to the DOJ, Adani and his associates are being charged under the Foreign Corrupt Practices Act (FCPA), which prohibits bribery of foreign officials and applies to individuals or entities that engage with the US financial system. Although the alleged bribes were directed at Indian officials, the charges fall under US jurisdiction because Adani’s companies raised billions of dollars from American investors through loans, bonds, and public offerings, including on the New York Stock Exchange.
US officials react: In a statement, Deputy Assistant Attorney General Lisa Miller said, “This indictment alleges schemes to pay over $250 million in bribes to Indian government officials, to lie to investors and banks to raise billions of dollars, and to obstruct justice. These offenses were allegedly committed by senior executives and directors to obtain and finance massive state energy supply contracts through corruption and fraud at the expense of U.S. investors. The Criminal Division will continue to aggressively prosecute corrupt, deceptive, and obstructive conduct that violates U.S. law, no matter where in the world it occurs.”
FBI Assistant Director in Charge Dennehy added, “Gautam S. Adani and seven other business executives allegedly bribed the Indian government to finance lucrative contracts designed to benefit their businesses. Adani and other defendants also defrauded investors by raising capital on the basis of false statements about bribery and corruption, while still other defendants allegedly attempted to conceal the bribery conspiracy by obstructing the government’s investigation. The FBI maintains its steadfast mission to expose all corrupt agreements, especially with international governments, and protect investors from related harm.”
Lawyers for Adani have declined to comment on the charges.
