Global Markets Rocked as Gautam Adani Faces Historic US Fraud Charges
In a stunning development that has sent shockwaves through global financial markets, federal prosecutors in New York have charged Indian billionaire Gautam Adani with orchestrating what they describe as a massive fraud and bribery scheme.
The case against one of Asia’s wealthiest individuals centers around allegations of paying over $250 million in bribes to secure lucrative solar energy contracts.
The 62-year-old business tycoon and seven other executives, including his nephew Sagar Adani, are accused of wire fraud, securities fraud, and conspiracy to violate the Foreign Corrupt Practices Act. The charges represent one of the most significant fraud cases brought against an international business figure in recent years.
According to prosecutors, the scheme’s scope was breathtaking. Between 2020 and 2024, Adani and his associates allegedly:
- Paid more than $250 million in bribes to Indian government officials
- Secured solar energy contracts worth billions of dollars
- Misled US and international investors during a $1.35 billion loan and $750 million bond offering
- Used code names and multiple phones to track bribe payments
- Attempted to hide evidence by deleting emails and presentations
The allegations have hit Adani’s business empire hard, with share prices of Adani Group companies plunging as much as 20% in Indian markets. Adani Green Energy, at the center of the controversy, saw its stock fall by 18%.
The scheme’s sophistication was notable. Prosecutors say the defendants used elaborate tracking systems, including Excel spreadsheets and PowerPoint presentations, to monitor bribe payments. They even used code names, referring to Gautam Adani as “SAG,” “Mr. A,” and “the big man” in their communications.
The case has also spotlighted Adani’s close ties to Indian Prime Minister Narendra Modi. Their relationship, which includes Modi flying to New Delhi on an Adani plane when he became prime minister in 2014, has long raised eyebrows in India’s business community.
The US Securities and Exchange Commission has filed parallel civil charges, claiming Adani Green Energy raised more than $175 million from US investors while hiding the bribery scheme. The company had proudly announced winning “the world’s largest solar award” – a deal now tainted by corruption allegations.
This isn’t the first time Adani has faced severe accusations. In January 2023, Hindenburg Research, a US short-seller, accused the Adani Group of “brazen stock manipulation and accounting fraud.” While Adani vehemently denied those claims, his fortune dropped by over $80 billion in the aftermath.
The timing is fascinating as it comes just days after Adani congratulated President-elect Donald Trump on X, promising to invest $10 billion in US energy projects and create 15,000 jobs.
Legal experts say this case could have far-reaching implications for international business practices and anti-corruption enforcement. The Foreign Corrupt Practices Act, under which some charges are filed, has previously led to massive fines for global companies like Siemens and Petrobras.
The impact is already spreading beyond Adani’s business interests. India’s opposition party has renewed calls for a parliamentary investigation into Adani’s companies, adding political pressure to the mounting legal challenges.
As this story unfolds, one thing is clear: the $85 billion fortune that made Adani Asia’s second-richest person faces its biggest test yet. The outcome of this case could reshape not just his business empire but also the landscape of international business oversight and anti-corruption enforcement.