U.S. Indictment Rocks India's Power Giants: Adani Faces Legal Turbulence

Indian billionaire Gautam Adani and his nephew face fraud charges in the U.S. for allegedly bribing Indian officials to secure power deals. The allegations led to a significant drop in Adani Group's market value, project cancellations, and broader implications for U.S. investment law compliance.

U.S. prosecutors have charged Indian billionaire Gautam Adani, his nephew Sagar, and others with fraud, alleging they were involved in a $265 million scheme to bribe Indian officials for lucrative power-supply contracts. Adani Group companies quickly felt the repercussions, losing billions in market value, and Kenya canceled a major airport project with the conglomerate.

According to the U.S. Department of Justice, Gautam and Sagar Adani were involved in securing contracts set to generate $2 billion in profits by paying bribes. Despite the charges, Adani Group denies the allegations and plans to pursue all legal avenues. The whereabouts of Gautam Adani remain unknown, and none of the defendants are currently in custody.

In the wake of these developments, Adani Green Energy withdrew a planned $600 million bond sale. Concerns about compliance with U.S. investor law have grown, as funds were raised under false pretenses. The controversy reignites scrutiny from the January 2023 Hindenburg Research report, which alleged improper financial practices by the conglomerate.

(With inputs from agencies.)