Gautam Adani’s Scandal: Billionaire’s Fall from Grace

Indian billionaire Gautam Adani, a close ally of Prime Minister Narendra Modi, has once again found himself embroiled in a massive controversy. US prosecutors have accused him of masterminding a $265 million bribery scheme, dragging his conglomerate into a spiraling crisis for the second time in just two years.

Adani, alongside seven co-defendants, faces multiple fraud charges. These allegations have caused a nosedive in stock and bond prices of Adani Group companies, further damaging investor confidence. Adani Green Energy, a flagship subsidiary, lies at the heart of the scandal, forcing the company to cancel a $600 million bond sale, adding fuel to the fire.

The US prosecutors claim the defendants bribed Indian government officials to secure contracts valued at $2 billion over 20 years. These deals were tied to building India’s largest solar power project. Additionally, Adani Green’s former CEO, Vneet Jaain, has been charged with securities fraud, conspiracy, and wire fraud, alongside Gautam and Sagar Adani.

Court records reveal arrest warrants for Gautam Adani and his nephew Sagar Adani, with plans to hand them over to international law enforcement. Despite these developments, neither defendant is in custody, as Adani reportedly remains in India.

In 2021, Adani Green raised $750 million through a note offering, with $175 million sourced from US investors. During this period, Gautam and Sagar Adani allegedly orchestrated their bribery operation. According to the US Securities and Exchange Commission (SEC), the Adanis violated federal securities laws. The SEC is seeking permanent injunctions, civil penalties, and bans on their leadership roles.

This scandal follows a turbulent 2022 when Hindenburg Research exposed the Adani Group for misusing offshore tax havens. The new allegations, unveiled by the US Attorney’s Office for the Eastern District of New York, paint an even grimmer picture of corporate corruption. Prosecutors revealed that conspirators referred to Gautam Adani with code names like “Numero Uno” and “The Big Man,” while Sagar Adani tracked bribery operations via his cellphone.

The fallout for the Adani Group is immense, with the conglomerate’s reputation in shambles. Its facade of renewable energy and ethical corporate governance stands shattered. The scandal has also cast doubt on India’s regulatory framework and highlighted the nexus between corporate giants and political powerhouses like Modi’s government.