Adani Group Chairman Gautam Adani, along with his nephew Sagar Adani and six others, was charged by US prosecutors in New York on Wednesday, November 20, in connection with an alleged ₹2,029 crore bribery and fraud case.
The allegations claim that bribes were offered to Indian government officials to secure profitable solar energy supply contracts with state electricity distribution companies.
US prosecutors indicted Gautam Adani for allegedly paying Rs 2,029 crore in bribes to Indian government officials
“This indictment alleges schemes to pay over $250 million in bribes to Indian government officials, to lie to investors and banks to raise billions of dollars, and to obstruct justice,” according to a press release from the US Attorney’s Office for the Eastern District of New York, US Deputy Assistant Attorney General Lisa H. Miller was quoted as saying.
Understanding the DOJ Case Against Adani
In addition to Gautam Adani and Sagar Adani (the 30-year-old son of his brother Rajesh Adani, and Executive Director of Adani Green Energy Ltd), the other defendants listed are: i) Vneet Jaain, CEO of Adani Green Energy Ltd; ii) Ranjit Gupta, CEO of Azure Power Global Ltd from 2019 to 2022; iii) Rupesh Agarwal, who worked with Azure Power between 2022 and 2023; iv), v), vi) Cyril Cabanes, an Australian and French citizen, along with Saurabh Agarwal and Deepak Malhotra, all of whom were employed by a Canadian institutional investor.
According to US prosecutors, the "Indian Energy Company" and a "US Issuer" secured contracts to provide 8 gigawatts and 4 gigawatts of solar power at a fixed rate to the state-owned Solar Energy Corporation of India (SECI).
SECI was tasked with selling this power to state electricity companies. However, due to its inability to find buyers, SECI was unable to finalize the corresponding power purchase agreements with Adani Group and Azure Power.
Following this, the defendants devised a scheme to bribe state government officials in India in order to purchase power from SECI. According to a press release from the Attorney’s Office of the Eastern District of New York, “…between approximately 2020 and 2024, the defendants agreed to pay more than $250 million in bribes to Indian government officials to obtain lucrative solar energy supply contracts with the Indian government, which were projected to generate more than $2 billion in profits after tax over an approximately 20-year period (the Bribery Scheme). On several occasions, Gautam S Adani personally met with an Indian government official to advance the Bribery Scheme…”
The US Securities and Exchange Commission also filed charges against Gautam Adani, Sagar Adani, and Cabanes.
Understanding an 'Indictment' in the US
An indictment in the US is a formal written charge brought by a prosecutor and issued by a grand jury against an individual accused of committing a crime.
When someone is indicted, they are officially notified that they are suspected of committing a crime. At this point, they can hire a defense attorney and begin taking steps to defend themselves.
Why the US Indictment If the Plan Was to Bribe Indian Officials?
Adani and the others have been charged with soliciting funds from US investors to finance the "bribery scheme."
“…Gautam S Adani, Sagar R Adani and Vneet S Jaain lied about the bribery scheme as they sought to raise capital from US and international investors,” According to the press release, Breon Peace, the United States Attorney for the Eastern District of New York, stated.
“These offenses were allegedly committed… at the expense of US investors. The Criminal Division will continue to aggressively prosecute corrupt, deceptive, and obstructive conduct that violates US law, no matter where in the world it occurs,” said Miller.
James Dennehy, FBI Assistant Director in Charge, said, “Adani and other defendants also defrauded investors by raising capital on the basis of false statements about bribery and corruption, while still other defendants allegedly attempted to conceal the bribery conspiracy by obstructing the government’s investigation.”
Adani Group's Response: How Have They Reacted?
A spokesperson for the Adani Group stated that the allegations made by the US Department of Justice and the US Securities and Exchange Commission against the directors of Adani Green are unfounded and have been denied.
The Fallout So Far
Following the allegations, the Adani Group canceled its $600 million bond offering. Adani Green Energy had planned to use the proceeds from the bond sale to repay a foreign-currency loan.
Shares of Adani Group companies plummeted by up to 20%, with Adani Green Energy falling 18.76%, Adani Energy Solutions dropping 20%, Adani Enterprises down by 10%, Adani Power declining 13.98%, and Adani Ports sliding 10% during the morning session.
Meanwhile, the Congress party reinforced its demand for a Joint Parliamentary Committee (JPC) investigation into the various alleged “scams” involving the Adani Group. In a post on X, Congress communications chief Jairam Ramesh stated that the indictment “vindicates” their call for a JPC probe. He also called for the appointment of a “new and credible” head of SEBI to ensure thorough investigations into the ‘Adani MegaScam’.
US Court Unseals Arrest Warrant Against Gautam Adani Last Month
An arrest warrant for Gautam Adani was unsealed in a New York court last month after the billionaire industrialist faced indictment on bribery and fraud charges. India Today obtained exclusive details of the warrant, which reveals that Judge Robert M. Levy ordered its unsealing on October 31, 2024.
The unsealing of the indictment and arrest warrant was done to make the documents available to foreign law enforcement agencies. The warrant was unsealed following a request by the US Attorney for New York (Eastern District).
Under American law, arrest warrants are issued by courts unless there is a reasonable expectation that the accused will voluntarily appear in court.
Senior advocate Vijay Aggarwal told India Today that the issuance of an arrest warrant in the United States does not necessarily imply that Adani will be arrested. "Just because there is an arrest warrant, it doesn't mean he (Adani) will be arrested, and the warrant will be executed in India. It never happens like that. It is not a James Bond movie," Aggarwal said.
The U.S. Justice Department has charged Adani, his nephew, and six others with paying bribes totaling USD 265 million (Rs 2,029 crore) to Indian government officials in exchange for securing solar power contracts with state-run electricity distribution companies. These alleged payments were made between 2020 and 2024.
U.S. prosecutors stated that the bribes were concealed from American banks and investors who helped raise billions for the Adani Group's solar energy project, which was expected to generate over $2 billion in profits over the next 20 years.
While the bribery charges involve Indian officials, U.S. law permits the pursuit of corruption cases if they impact U.S. investors or markets. The Adani Group has denied the allegations, calling them "baseless," and has pledged to address the matter legally.
Central to the case is a contract secured by Adani Green Energy and Azure Power to supply 12 gigawatts of solar electricity to the Solar Energy Corporation of India (SECI). However, SECI struggled to find buyers due to high prices. In response, Adani and Azure allegedly conspired to bribe state officials to secure contracts with state-owned distribution companies in Andhra Pradesh, Chhattisgarh, Tamil Nadu, Odisha, and Jammu and Kashmir, as outlined in the U.S. indictment.
BJP's Counteroffensive Strategy
Accusing Opposition Parties: The BJP has shifted focus to the opposition, questioning why their governments permitted alleged bribes to be paid to state agencies. BJP leaders are calling on Congress and its allies to explain their involvement during this time.
Presumption of Innocence: The ruling party has emphasized that the US indictment consists solely of allegations, not established charges. They have highlighted the report's disclaimer, which asserts that the accused are presumed innocent until proven guilty.
Global vs. Domestic Politics: BJP leaders have expressed concerns about the opposition's reliance on a foreign report to criticize an Indian company, asserting that if the allegations are valid, they should be addressed through Indian legal channels. They have also drawn comparisons, suggesting that Indian courts could take action against American companies for corrupt activities in India and questioning whether foreign governments would accept such interference in their own political affairs.
Timing of the Allegations: The BJP has raised doubts about the timing of the report, suggesting it may be part of a politically charged attempt to undermine the government ahead of the winter session beginning November 25. The party has also linked the timing to developments in the United States, including Donald Trump’s presidential campaign, hinting at possible geopolitical motivations.
Conclusion
In conclusion, despite the opposition's claims, there is no substantial evidence linking the BJP or Modiji to any involvement in the Adani bribery case. The continuous targeting of the BJP appears to be politically motivated, as the party has consistently denied any wrongdoing. The allegations remain unsubstantiated, and the focus on the BJP seems more like an attempt by the opposition to undermine its credibility rather than a reflection of the facts surrounding the case.
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