Indian billionaire Gautam Adani and his nephew Sagar Adani are at the center of a major US indictment. They are accused of conspiring with executives of Azure Power, a company formerly listed on the New York Stock Exchange, in a $265 million bribery scheme to gain advantages in India’s solar energy sector.
The Adani Group has denied the allegations, calling them “baseless,” while Indian officials have yet to comment.
Key Allegations
US prosecutors claim Gautam Adani, Sagar Adani (director of Adani Green), and six others were involved in bribery and fraud tied to renewable energy projects. These projects benefitted both the Adani Group and Azure Power.
The indictment reveals that in 2020, Adani Green and Azure executives allegedly conspired to bribe Indian officials to secure business benefits. Despite publicly claiming anti-corruption policies, they reportedly misled US investors while raising over $3 billion in loans and bonds between 2021 and 2024.
During a $750 million bond offering in September 2021, Adani executives are accused of providing false statements about their anti-bribery practices, misleading investors, including those in the United States.
Tracking and Paying Bribes
Sagar Adani reportedly tracked bribes on his mobile phone. Prosecutors allege Gautam Adani discussed the scheme during a 2022 meeting with Azure executives. For one project involving 2.3 gigawatts of power, bribes were estimated at $30,000 per megawatt.
Azure executives allegedly analyzed how to repay Adani Green for bribes, exploring methods like transferring projects or labeling payments as “development fees.” Azure has since clarified that the officers involved are no longer part of the company and emphasized its cooperation with US authorities.
Projects in Question
Dubbed “The Corrupt Solar Project,” the case involves solar plants awarded to Adani Green and Azure between 2019 and 2020 by the Solar Energy Corporation of India (SECI). Prosecutors claim that bribes were paid to secure these tenders, benefiting both companies.
How the Investigation Unfolded
In March 2023, FBI agents approached Sagar Adani with details of the grand jury investigation. They seized electronic devices and served search warrants under allegations of Foreign Corrupt Practices Act violations, securities fraud, and wire fraud.
What’s Next for Adani Group?
The Adani Group stated it would pursue “all possible legal recourse.” Legal experts suggest the case might end in a settlement or dismissal. If convicted, those involved could face asset forfeiture.
Indian authorities may also play a role if US prosecutors request cooperation through official diplomatic channels.
Stay tuned as this case unfolds, with global implications for both business ethics and renewable energy projects.
