Adani charged in US in bribery case – Gautam Adani charged in US in bribery fraud case

Gautam Adani’s troubles escalated after US prosecutors charged the Adani Group chairman, his nephew Sagar Adani and six others for allegedly paying Rs 2,029 crore ($265 million) in bribes to Indian government officials to secure solar energy contracts with state-owned electricity distribution companies. The bribes were to be paid in the years 2020–2024.

American prosecutors claimed that this fact was hidden from American banks and the investors from whom The Adani group raised billions for a solar energy project. The Adani group hoped to make $2 billion in profits by securing energy contracts.

While bribery charges are linked to Indian officials, U.S. law allows corruption cases to proceed if they involve U.S. investors or markets.

The period during which the bribes were allegedly paid coincides with the 2023 publication of a damning report by US short-selling firm Hindenburg Research. The report accused the Adani Group of share manipulation and accounting fraud. This resulted in a $150 billion loss in market value for the Adani Group.

But what is the case in which Gautam Adani was accused? We will decipher the intricacies of the case for you.

According to the US indictment, Gautam Adani is named as the founder and chairman of the “Indian Energy Company”, which is the center of the scandal. Sagar Adani is listed as the executive director of an energy company (Adani Green Energy).

Ranjit Gupta, who was the CEO of Azure Power, and Rupesh Agarwal, a consultant and CEO of Azure Power, are listed as working for a “U.S. issuer.”

US prosecutors said the “Indian Energy Company” and the “US issuer” signed a contract to supply 12 gigawatts of solar power to state-owned Solar Energy Corporation of India (SECI).

However, SECI could not find buyers in India to purchase solar power. Without buyers, the transaction could not have been completed, and both companies risked losing expected profits. It was then that Adani Group and Azure Power came up with the idea of ​​paying bribes to Indian government officials.

In return, government officials would persuade state electricity distribution companies to enter into power supply agreements with SECI. They promised bribes of around $265 million, much of which went to officials in Andhra Pradesh.

Subsequently, some state-owned power companies entered into an agreement with SECI to purchase solar power from both companies. “The Indian energy company and the U.S. issuer worked closely to split the bribes,” the indictment said.

U.S. prosecutors further said the conspirators used codenames to conceal their involvement. For example, Gautam Adani was nicknamed “Numero Uno” or “The Great Man”. Communication took place via encrypted messages.

However, changes in the management of the “US Issuer” led to upheavals. Ranjit Gupta was CEO of Azure Power from 2019 to 2022. In 2022–2023, this function was taken over by Rupesh Agarwal. Some of the management staff involved in the project were asked to resign.

Meetings were held to determine how to repay the promised bribes inconspicuously. Options included transferring part of the project or hiding the payments as fees.

“The conspirators began to implement their plans, including: by handing part of the project back to the Indian energy company to settle bribery obligations. “The defendants fabricated reasons for returning the projects, claiming that the reasons were litigation and the deteriorating economy,” the indictment reads. he said.

However, the Adani Group concealed from the US Issuer’s management that it had already promised bribes in exchange for securing another set of power purchase agreements (PPAs).

The indictment said that Gautam Adani allegedly spearheaded the reallocation and had a direct influence on SECI’s decision to approve the transfer.