Gautam Adani: American court issues arrest warrant for one of the richest people in India for “bribes of $250 million”

An American federal court has issued an arrest warrant for one of the richest men in India.

Billionaire Gautam Adani has been indicted by the US Securities and Exchange Commission (SEC) for allegedly defrauding investors and bribing officials.

The 62-year-old head of the Adani Group, worth $116 billion (£91.77 billion), faces charges along with his nephew Sagar Adani and six others in connection with one of the world’s largest solar projects.

An FBI investigation found that Adani and others agreed to bribe Indian government officials to obtain lucrative solar contracts.

Deputy Assistant Attorney-General Lisa Miller said: “This indictment alleges schemes to pay over $250 million (£197.75 million) in bribes to Indian government officials, lie to investors and banks to raise billions of dollars, and obstruct justice.”

FBI Deputy Director James Dennehy said: “Adani and other defendants also defrauded investors by raising capital based on false bribery and corruption claims, while still other defendants allegedly attempted to conceal the bribery conspiracy by obstructing the government’s investigation.”

The 54-page indictment alleges that between 2020 and 2024, the defendants agreed to pay bribes for contracts that would generate profits in excess of $2 billion (£1.58 billion).

The FBI said that on several occasions, Adani met in person with an Indian government official to further the bribery program, and the defendants held personal meetings with each other to discuss aspects of its implementation.

The indictment says some of the conspirators used the codenames “numero uno” and “big man” when referring to Mr. Adani in private.

“Sagar Adani had notes on his cell phone that tracked the region where the bribe was paid, the amount paid and the expected size of the solar contract his company was expected to provide in return,” it said.

She added text messages purporting to reveal that other Adani Group associates were trying to destroy evidence and mislead federal investigators.

Adani’s story is linked to Modi

News of the case sent Adani shares into a frenzy, with some of them plunging by more than 20%, hitting lower shares in today’s morning trade.

The market value of the conglomerate’s various companies lost millions.

Adani is a supporter of Prime Minister Narendra Modi.

Both are from Gujarat, where Modi was chief minister for over a decade.

Since Modi became prime minister in 2014, Adani’s rise can only be described as colossal.

Over the last five years, its value has increased by over 2,500%.

From coal to green energy, ports and airports, Mr. Adani is inextricably linked to India’s economic growth story.

At a press conference, Opposition Leader Rahul Gandhi demanded: “The immediate arrest of Mr. Adani for violating laws in the US and India and initiation of an investigation. Prime Minister Modi is protecting the businessman as he is involved in his corruption.”

BJP leader Sambit Patra said the allegations are against the company which responds to them. He added: “The people of the country stand behind Prime Minister Modi and his credibility is intact and growing.”

In February 2023, the American short-selling firm Hindenburg Research published a report accusing the Adani Group of manipulating share prices, committing accounting fraud and engaging in money laundering.

The group rejected the allegations as “malicious and baseless.”

However, the allegations wiped out the company’s valuation of more than $100 billion (£79 billion).

In response to the latest allegations, the group said: “The allegations made by the U.S. Department of Justice and the U.S. Securities and Exchange Commission against Adani Green executives are baseless and deniable.

“As the United States Department of Justice itself has stated, ‘the charges contained in the indictment are allegations and the defendants are presumed innocent until proven guilty.’ All possible legal remedies will be pursued.

“The Adani Group has always and remains committed to maintaining the highest standards of governance, transparency and regulatory compliance in all jurisdictions where it operates.

“We assure our stakeholders, partners and employees that we are a law-abiding organization that fully complies with all laws.”

A number of Adani projects in Kenya, Bangladesh, Sri Lanka and Australia have become major contentious issues over transparency and environmental damage and have been met with significant protests outside India.