Indian Billionaire Gautam Adani Indicted on U.S. Investor Fraud Charges “`
NEW YORK — A prominent Indian businessman, among the world’s wealthiest, faces U.S. indictment for allegedly deceiving investors. The indictment claims he concealed a bribery scheme facilitating his company’s massive solar energy project in India.
Gautam Adani, 62, is charged with securities fraud and conspiracy. The case centers on Adani Green Energy Ltd.’s and another firm’s deal to supply 12 gigawatts of solar power to the Indian government—a significant amount capable of powering millions of homes and businesses.
The indictment alleges Adani and his co-defendants engaged in deceptive practices on two fronts.
It accuses them of presenting a positive and legitimate image to Wall Street investors, who invested billions in the project, while simultaneously allegedly paying or planning to pay approximately $265 million in bribes to Indian government officials to secure billions of dollars in contracts and financing.
Adani and his co-defendants allegedly aimed to “secure and fund substantial state energy contracts through corruption and fraud at the expense of U.S. investors,” according to Deputy Assistant Attorney General Lisa Miller.
In a related civil case, the U.S. Securities and Exchange Commission (SEC) charged Adani and two co-defendants with violating U.S. securities laws. The SEC seeks financial penalties and other sanctions.
Both cases are in Brooklyn federal court. Adani’s co-defendants include his nephew, Sagar Adani (Adani Green Energy’s executive director), and Vneet Jaain (former CEO and current managing director of Adani Green Energy’s board).
Court records haven’t listed legal representation for Adani. Requests for comment were sent to the Adani Group and lawyers for the co-defendants. Sagar Adani’s lawyer, Sean Hecker, declined to comment. Others did not immediately respond.
Sanjay Wadhwa, acting SEC Enforcement Division director, stated that Gautam and Sagar Adani are accused of misleading investors about their anti-bribery compliance program and the absence of bribery by senior management to encourage bond purchases.
Adani is a powerful figure in India. He built his wealth in the coal industry during the 1990s. The Adani Group’s diverse holdings span various sectors, including defense, infrastructure, and consumer goods.
Adani has recently expanded into renewable energy, promoting a sustainable growth philosophy (“Growth with Goodness”).
Last year, a U.S. financial research firm accused Adani and his company of “blatant stock manipulation” and “accounting fraud.” The Adani Group dismissed these claims as “a malicious mix of selective misinformation and outdated, unfounded, and discredited allegations.”
The firm, a short-seller (a trader betting on stock price declines), held short positions in Adani Group stocks.