- By Shivangi Sharma
- Thu, 21 Nov 2024 11:26 AM (IST)
- Source:JND
Gautam Adani, the founder and chairman of the Adani Group, along with seven other executives, has been indicted in the United States on charges of securities fraud, wire fraud, and violations of the Foreign Corrupt Practices Act (FCPA). According to Reuters, the indictment, announced in a Brooklyn federal court, accuses the defendants of orchestrating a sophisticated bribery scheme to secure solar energy contracts in India. The charges also allege that they misled international investors, raising over $3 billion (Rs 24,900 crores) through deceptive practices.
The indictment accuses Ranjit Gupta, Rupesh Agarwal, and three former employees of a Canadian institutional investor, Cyril Cabanes, Saurabh Agarwal, and Deepak Malhotra, of conspiring with Gautam Adani, Sagar Adani, and Vneet Jaain to violate the Foreign Corrupt Practices Act through a bribery scheme linked to one of the world’s largest solar energy projects.
Prosecutors Reveal $3 Billion Fraud
“As alleged, the defendants orchestrated an elaborate scheme to bribe Indian government officials to secure contracts worth billions of dollars and Gautam S Adani, Sagar R Adani and Vneet S Jaain lied about the bribery scheme, as they sought to raise capital from the US and international investors,” stated United States Attorney Peace.
“My Office is committed to rooting out corruption in the international marketplace and protecting investors from those who seek to enrich themselves at the expense of the integrity of our financial markets,” the statement added.
Complete DOJ Statement on Bribery Charges Against Gautam Adani
Prosecutors allege that Gautam Adani and former Adani Green Energy CEO Vineet Jain secured over USD 3 billion in loans and bonds by hiding their corruption from investors and lenders. The indictment reveals that conspirators privately referred to Adani as ‘The Big Man’ or ‘Numero Uno’, while Sagar Adani reportedly tracked bribery details using his cellphone.
“Gautam S Adani and seven other business executives allegedly bribed the Indian government to finance lucrative contracts designed to benefit their businesses. 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,” stated FBI Assistant Director in Charge Dennehy.
Sagar Adani Tracked Bribes, Adani Group Misled US Investors
Between 2020 and 2024, Gautam Adani and co-defendants allegedly paid over $250 million (Rs 20,750 crore) in bribes to Indian officials to secure solar energy contracts projected to generate $2 billion (Rs 16,600 crores) in post-tax profits over 20 years. The scheme involved in-person meetings, documented bribe details, and analyses on payment concealment. Sagar Adani tracked bribes on his phone, while Vneet Jaain photographed bribe summaries, and Rupesh Agarwal created detailed analyses.
Adani, Sagar Adani, and Vneet Jaain are also accused of misleading US investors and financial institutions to raise over $3 billion through loans and bonds, concealing the bribery scheme and making false statements about anti-corruption practices in financial disclosures.