Indian billionaire Gautam Adani has been indicted by US prosecutors for fraud, with arrest warrants issued for him and his nephew Sagar, over their involvement in a $265 million bribery scheme to secure power-supply deals in India, Reuters reports.
The indictment accuses the Adanis of bribing Indian officials to secure contracts expected to generate $2 billion in profits over 20 years, including the country’s large solar power plant. The Adanis and former Adani Green Energy CEO Vneet Jaai are charged with securities fraud, wire fraud, and conspiracy to hide the corruption from investors and lenders while raising billions through loans and bonds. Adani Green Energy raised $750 million, including $175 million from US investors, during a 2021 note offering despite the bribes. The Adani Group denies the allegations, maintaining that it follows the highest standards of governance and compliance.
This news caused a massive drop in Adani Group’s stock value, erasing $27 billion in market value, while Adani Green Energy canceled a $600 million US bond sale. Kenyan President William Ruto also canceled a procurement process for Adani Group to take control of Kenya’s main airport.