Introduction

Indian billionaire Gautam Adani, one of the world’s wealthiest individuals, has been charged with fraud by U.S. federal prosecutors in New York. The charges, unveiled on Wednesday, November 20, 2024, allege that Adani and his associates orchestrated a massive bribery scheme and subsequently misled investors about their activities.

The Charges

The indictment accuses Adani and his co-defendants of:

Securities fraud

Conspiracy to commit securities fraud

Wire fraud

The Alleged Scheme

According to prosecutors, the defendants:

Paid over $250 million in bribes to Indian government officials to secure solar energy contracts worth billions of dollars for Adani Green Energy Ltd.

Misled U.S. and international investors about the company’s anti-bribery measures while seeking to raise capital.

Obtained more than $3 billion in loans and bonds based on false and misleading claims.

Key Figures Involved

Gautam Adani, 62, chairman of the Adani Group

Sagar Adani, Gautam’s nephew and executive director of Adani Green Energy’s board

Vneet Jaain, former CEO of Adani Green Energy (2020-2023) and current managing director

Legal Actions

Criminal charges filed by the U.S. Attorney’s Office in the Eastern District of New York.

Parallel civil action by the U.S. Securities and Exchange Commission (SEC) against Adani and two co-defendants for violating antifraud provisions of U.S. securities laws.

Implications

This indictment represents a significant blow to Adani, whose conglomerate has diverse interests in ports, coal mining, airports, and renewable energy. The charges come after previous allegations of fraud by a U.S.-based short-seller firm in 2023, which Adani had denied.

Conclusion

The case has attracted international attention due to Adani’s prominence in India and his close association with Indian Prime Minister Narendra Modi. U.S. authorities have issued arrest warrants for both Gautam and Sagar Adani, with plans to present these to international law enforcement agencies.

As this is an ongoing legal matter, further developments are expected in the coming weeks and months.