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Indian Entrepreneur Adani Charged with Fraud in US Over Massive Indian Solar Deal

An Indian entrepreneur, Gautam Adani, among the globe’s wealthiest individuals, has been charged in the US for allegedly deceiving investors by withholding the information that his major solar energy initiative in India was facilitated through a suspected bribery scheme.

Federal prosecutors in New York unveiled the indictment on Wednesday, accusing Adani of securities fraud and conspiracy to commit securities and wire fraud. The case pertains to a lucrative deal involving Adani Green Energy Ltd. and another company to supply 12 gigawatts of solar power to the Indian government, sufficient to illuminate millions of homes and businesses.

The indictment describes Adani and his co-defendants as misleading Wall Street investors about the integrity of the project, which attracted billions of dollars over five years, while allegedly planning to pay $265 million in bribes to Indian government officials to secure substantial contracts and financing.

Deputy Assistant Attorney General Lisa Miller stated that the defendants aimed to “obtain and finance massive state energy supply contracts through corruption and fraud at the expense of US investors”

US Attorney Breon Peace said the defendants orchestrated a complex scheme to “enrich themselves at the expense of the integrity of our financial markets.”

In a related civil lawsuit, the US Securities and Exchange Commission accused Adani and two co-defendants of violating US securities laws’ antifraud provisions, seeking monetary penalties and other sanctions. Both cases were filed in Brooklyn federal court.

Adani’s co-defendants include his nephew Sagar Adani, a director on Adani Green Energy’s board, and Vneet Jaain, the company’s chief executive from 2020 to 2023 and currently its managing director.

Sanjay Wadhwa, acting director of the SEC’s Enforcement Division, stated that Gautam and Sagar Adani allegedly misled investors into purchasing bonds by falsely claiming that Adani Green had a robust anti-bribery compliance programme and that senior management would not engage in bribery.

Adani, a significant figure in the world’s most populous country, amassed his fortune in the coal industry in the 1990s. The Adani Group now spans various sectors, from defence equipment manufacturing to road construction and cooking oil sales.

Recently, the Adani Group has heavily invested in renewable energy, promoting sustainable growth. With a clean energy portfolio exceeding 20 gigawatts, including a vast solar power plant in Tamil Nadu, the group aims to dominate India’s renewable energy sector by 2030. In 2022, Gautam Adani announced a $70 billion investment in clean energy projects by 2032.

Frances Ibiefo

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Frances Ibiefo

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