SEC Charges Adani Group with $265 Million Bribery Scheme

In an important development, the United States ​Securities and Exchange Commission (SEC) ​accused ​Indian conglomerate Adani Group and its president, Gautam Adani, of organizing a $265 ​million corruption plan to obtain lucrative solar ​energy contracts ​in India. Claims claim that the company hid these illegal payments ​from US investors ​while collecting substantial funds through ​bonds and loans.

The SEC’s complaint states that between 2020 ​and 2024, Adani Group leaders, including Gautam Adani and his nephew Sagar Adani, conspired to pay bribes to officials of the Indian government in order to obtain favourable contracts for Adani Green Energy Ltd. These contracts are expected to generate more than $2 billion in profits over two decades. The indication also ​cites former executives of Azure Power and the ​Canadian pension fund CDPQ, alleging their participation in the plan.

According ​to the charges, the ​defendants deceived investors by promoting Adani ​Green Energy as a leader ​in corporate governance and anti-corruption practices. In fact, they were allegedly involved ​in a massive corruption ​operation, in violation of the Law ​on Foreign Corruption Practices (FCPA) and disappointing investors by amalgamating material information. The civil action ​of the SEC is accompanied by criminal charges filed by the U.S. Public Prosecutor’s Office in Brooklyn, New ​York.

The failure of these allegations was swift ​and severe. Adani Group companies reportedly lost $26 billion ​in market value, with Adani Enterprises’ share of 23%. This scandal has also generated ​calls for parliamentary research into Adani’s activities in Indian policy, highlighting the ​broader implications for ​corporate governance and investor confidence in India’s business environment.

In response to the accusations, Adani Group denied any reasoning, declaring the allegations unfounded. The company stated that it sought all possible ​legal ​remedies ​and remained committed to maintaining the highest standards of governance and transparency. However, the seriousness of positions and possible legal consequences pose significant challenges to ​the operations of the conglomerate and its ​ability to secure international funding.