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Three charges, four names and a $250 million bribe: the full story of the Gautam Adani crisis in the US

Three charges, four names and a 0 million bribe: the full story of the Gautam Adani crisis in the US

US prosecutors have charged Gautam Adani with allegedly orchestrating a $250 million bribery scheme, plunging the Indian tycoon’s empire back into crisis just as it was recovering from earlier allegations of fraud by short-seller Hindenburg.

The charges allege that Adani and other defendants promised bribes to Indian government officials to secure solar contracts. They allegedly concealed these activities by raising funds from American investors.

Prosecutors described in detail a complex plan to manipulate government decisions and mislead financial institutions.

What happened?

Adani and his associates allegedly promised Indian officials $265 million in bribes to ensure that state-owned electricity distributors signed power purchase agreements (PPAs). The deals unlocked profits for both the Indian energy company and its American partner.

The conspirators used codenames, encrypted messages and false justifications to conceal their actions. They kept detailed notes on recipients, amounts and regions, working together to split bribe payments and cover their tracks.

Management moved parts of the project to settle kickback liabilities, falsely citing litigation and economic challenges as the reasons for the changes. Gautam Adani allegedly directed this reallocation, influencing decisions at the highest levels.

Names are involved

  • Gautam S. Adani, founder of the Adani Group
  • Sagar R. Adani, his nephew and director of the company
  • Vneet S. Jaain, former CEO of an Indian energy company
  • Ranjit Gupta, former CEO of the US issuer
  • Others include non-executive directors and consultants involved in organizing and concealing the scheme.

Charges

Bribery: Defendants conspired to pay bribes and obstructed U.S. investigations by destroying evidence, concealing documents, and providing false information to authorities, including the SEC and the FBI.

Securities and Internet Fraud: The Adani Group allegedly raised more than $2 billion through loans and securities based on false claims, misleading U.S. investors about its anti-corruption practices and financial integrity.

FCPA Violations: Defendants obstructed the SEC’s investigation by deleting emails and withholding key evidence while conducting an internal investigation to create a façade of transparency.

In a statement, the Adani Group denied the allegations and said that the allegations made by the US Department of Justice and the US Securities and Exchange Commission against Adani Green directors are baseless.

“As the United States Department of Justice itself has stated, the allegations 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 in which it operates. We assure our stakeholders, partners and employees that we are a law-abiding organization that fully complies with all regulations,” the group said in its official statement.