Indian billionaire Gautam Adani, one of the world’s wealthiest individuals, has been indicted in the United States on charges of orchestrating a bribery scheme that underpinned a massive solar energy project in India. The indictment, unsealed on Wednesday in Brooklyn federal court, accuses Adani of securities fraud and conspiracy to commit securities and wire fraud, casting a shadow over his reputation as a key player in India’s renewable energy ambitions.
The indictment alleges that Adani, along with his nephew Sagar Adani and former Adani Green Energy CEO Vneet Jaain, duped investors by concealing that the company’s lucrative solar energy contracts with the Indian government were facilitated through a $265 million bribery scheme. This alleged corruption aimed to secure deals for Adani Green Energy Ltd. and a partner firm to sell 12 gigawatts of solar power — an amount sufficient to illuminate millions of Indian homes and businesses.
U.S. prosecutors describe the scheme as a dual deception: while presenting the project as legitimate and ethical to global investors, Adani and his associates allegedly engaged in corrupt practices to secure state energy contracts in India. Deputy Assistant Attorney General Lisa Miller summarized the situation, stating that the defendants sought to “obtain and finance massive state energy supply contracts through corruption and fraud at the expense of U.S. investors.”
The alleged bribery scheme has significant implications for international investors. U.S. Attorney Breon Peace condemned the defendants for compromising the integrity of financial markets, noting that their misrepresentations induced global investors to pour billions of dollars into the project under false pretenses. In a parallel civil action, the U.S. Securities and Exchange Commission (SEC) accused the Adanis and Jaain of violating antifraud provisions of U.S. securities laws. The SEC is pursuing financial penalties and other sanctions against the accused.
Adani, 62, is a prominent industrialist who began his empire in coal and expanded into various sectors, including infrastructure, defense, and cooking oil. His company, the Adani Group, has increasingly focused on renewable energy in recent years, promoting itself as a leader in India’s clean energy transition under the slogan “Growth with Goodness.”
The indictment also names Sagar Adani, executive director of Adani Green Energy, and Vneet Jaain, who served as the company’s CEO from 2020 to 2023. While lawyers for the accused were largely unresponsive, Sagar Adani’s attorney, Sean Hecker, declined to comment on the allegations.
The Adani Group has positioned itself as a champion of renewable energy, boasting a portfolio of over 20 gigawatts of clean energy capacity, including one of the world’s largest solar plants in Tamil Nadu. Gautam Adani announced in 2022 that the conglomerate would invest $70 billion in clean energy projects by 2032, aiming to make India a global leader in the sector. However, the new charges cast a shadow over these ambitions and raise questions about the company’s governance practices.
This is not the first time the Adani Group has faced scrutiny. In 2023, U.S.-based financial research firm Hindenburg Research accused the conglomerate of stock manipulation and accounting fraud. Adani Group vehemently denied the claims, calling them “baseless” and “malicious.” Nevertheless, the accusations triggered a significant market rout, erasing over $150 billion in the group’s market value.
The latest allegations have again rattled investors. Following the unsealing of the indictment, Adani Group canceled a planned $600 million bond offering. The decision came amid a sharp decline in the group’s U.S. dollar-denominated bonds, with notes issued by Adani Green Energy and other subsidiaries seeing record drops.
“While Adani has shown resilience in weathering past allegations, this development underscores the persistent risks associated with emerging markets, particularly around governance, transparency, and regulatory scrutiny,” remarked Mohit Mirpuri, a fund manager at SGMC Capital Pte in Singapore.
According to prosecutors, the alleged bribery scheme began in 2020 or 2021 as Adani Green Energy sought to secure power purchase agreements with state-run electricity distributors in India. These distributors, responsible for buying power from the national government and supplying it to homes and businesses, were hesitant to commit to the high prices demanded by Adani Green and its partner firm. To overcome this resistance, the companies allegedly promised bribes to government officials.
Between 2021 and 2022, electricity distributors in five Indian states or regions reportedly signed agreements to purchase energy from Adani Green, following the alleged bribes. Gautam Adani publicly celebrated these agreements as the “world’s largest” power purchase deal, further boosting investor confidence. Prosecutors, however, argue that the company’s assurances of ethical conduct were fraudulent, designed to obscure the corrupt practices underlying the deals.
The charges against Gautam Adani have sparked a global debate about the risks of investing in emerging markets, where transparency and regulatory oversight are often inconsistent. Critics argue that the case highlights systemic issues in India’s business environment, while others contend that it reflects broader challenges in balancing rapid economic growth with ethical corporate governance.
The indictment has also raised questions about the role of global financial institutions in scrutinizing their investments. The Adani Group’s renewable energy projects have been touted as a key part of India’s strategy to combat climate change, attracting significant funding from international banks and investment firms.
The controversy comes at a critical time for India’s renewable energy sector. As the world’s third-largest emitter of greenhouse gases, India has set ambitious goals to transition to clean energy, including achieving 500 gigawatts of non-fossil fuel capacity by 2030. The Adani Group has been a cornerstone of this effort, with plans to scale up solar and wind energy production significantly.
However, the allegations against Adani could undermine investor confidence in the sector, potentially slowing progress toward these targets. Analysts warn that the fallout from the indictment could discourage foreign investment in India’s energy market, particularly if questions about corruption and governance persist.
