Indian billionaire Gautam Adani has been charged with fraud in the United States, where authorities accuse him of orchestrating a $250 million (£198 million) bribery scheme and concealing it to raise funds from U.S. markets.
The charges, filed on Wednesday in New York, mark another significant setback for the 62-year-old business magnate whose global empire spans sectors like ports, airports, and renewable energy.
Prosecutors allege that Gautam Adani and senior executives arranged bribes to Indian officials to secure contracts for his renewable energy firm, projected to generate over $2 billion in profits across two decades.
The Adani Group dismissed the accusations as “baseless,” asserting it would pursue “all possible legal recourse” in response.
Following the announcement, shares of Adani Group companies plunged over 10% on Thursday, wiping out more than $20 billion in market capitalization. Adani Green Energy, at the center of the controversy, also withdrew a planned $600 million bond offering.
The group has faced scrutiny since 2023, when U.S.-based Hindenburg Research accused it of stock manipulation and accounting fraud spanning decades—claims denied by Adani. These allegations triggered a sell-off and led to an investigation by India’s Securities and Exchange Board of India (SEBI).
Later, Hindenburg also alleged connections between SEBI Chair Madhabi Puri Buch and offshore funds linked to the Adani Group, which both Buch and the group denied.
Prosecutors revealed that the U.S. investigation began in 2022 but was obstructed by the company. They claim Gautam Adani executives secured $3 billion in loans and bonds, including from U.S. investors, through false statements regarding the firm’s anti-bribery policies and the ongoing bribery probe.
“As alleged, the defendants orchestrated an elaborate scheme to bribe Indian government officials to secure contracts worth billions of dollars and… misled investors to raise capital,” stated U.S. Attorney Breon Peace. He emphasized a commitment to addressing international corruption and protecting financial market integrity.
Reports indicate Adani personally met with government officials to facilitate the alleged scheme.
Michael Kugelman, director of the South Asia Institute at the Wilson Center, described the charges as a severe blow to Adani’s reputation.
“For nearly two years, Adani has been working to repair his image following earlier fraud claims by Hindenburg, arguing his businesses were sound. These U.S. allegations will be harder to dismiss,” he said.
U.S. investment firm GQG Partners LLC, which has invested almost $10 billion in the Adani Group, stated it is “monitoring the charges” and may take appropriate actions regarding its portfolios.
Moody’s Ratings described the indictment as “credit negative” for the group, emphasizing concerns about the companies’ access to capital and governance practices.
The case is expected to spark political controversy in India.
Adani, a known ally of Indian Prime Minister Narendra Modi, has long faced accusations from opposition leaders of benefiting from political connections—allegations he denies.
Opposition leader Rahul Gandhi demanded Adani’s arrest and the dismissal of SEBI Chair Madhabi Puri Buch during a press conference.
Notably, Adani recently pledged to invest $10 billion in the U.S. while congratulating Donald Trump on his election victory, just weeks before the charges were filed.
