US prosecutors in New York have indicted Gautam Adani, chairman of the Adani Group, his nephew Sagar Adani, and six others for allegedly paying ₹2,029 crore ($265 million) in bribes to Indian government officials to secure lucrative solar energy contracts. The charges also allege fraudulent practices to raise over $3 billion through concealed corruption.

Allegations Against Gautam Adani

The indictment accuses Gautam Adani, Sagar Adani, and others of:

• Offering $265 million in bribes to secure solar energy supply contracts projected to yield $2 billion in profits over 20 years.
• Using codenames such as "Numero Uno" and "the big man" to refer to Gautam Adani in communication between conspirators.
• Concealing corruption while raising $3 billion in loans and bonds for Adani Green Energy.

Legal Action and Arrest Warrants

A US court has issued arrest warrants for Gautam Adani, 62, and Sagar Adani. Prosecutors plan to forward the warrants to foreign law enforcement for action. The US Securities and Exchange Commission (SEC) has also filed civil charges against the Adanis and Cyril Cabanes, a co-defendant and dual French-Australian citizen.

Among the other accused are former Azure Power Global executives Ranjit Gupta and Rupesh Agarwal, along with individuals linked to a Canadian institutional investor. Most defendants are Indian citizens, with Cabanes residing in Singapore.

Impact on Adani Group Stocks

Following the announcement, shares of Adani Group companies plummeted:

• The S&P BSE Sensex dropped 584.87 points to 76,993.51.
• The NSE Nifty50 fell 202.40 points to 23,316.10.

The sharp declines were attributed to investor concerns over the allegations and their impact on the conglomerate.

Adani Group’s Response

The Adani Group has yet to comment on the charges. India’s embassy in Washington and legal representatives for the accused also did not issue immediate responses.

Recent Controversies

This indictment comes amid ongoing scrutiny of Adani Group’s business practices:

• Hindenburg Research Report (January 2023): The US-based short-seller accused the conglomerate of using offshore tax havens improperly, sparking a $150 billion collapse in Adani Group stocks.
• Green Bond Sale: Hours before the charges were announced, Adani raised $600 million by selling 20-year "green" bonds, a move seen as part of efforts to stabilize finances.

Future Developments

Gautam Adani recently announced plans to invest $10 billion in US energy infrastructure, promising to create 15,000 jobs. However, these allegations cast a shadow over those plans, further complicating the billionaire’s efforts to rebuild his reputation.

This legal battle adds to the mounting challenges facing the Adani Group, as global investors and regulators scrutinize its operations and transparency.