The charges have accused Indian billionaire Gautam Adani for conducting a $250 million bribery scheme in the U.S. that was designed to ensure lucrative renewable energy contracts were awarded to his firm. An indictment, filed Wednesday in New York, charged that Adani and his executives lied to investors through concealing the bribery scheme in selling $3 billion in loans and bonds.

Bribery and Fraud Charges

Prosecutors charge that Adani and his confederates arranged payments to Indian public officials for contracts expected to generate over $2 billion in profit over a twenty-year period. Profits, prosecutors claim, camouflaged by false statements about the company’s anti-bribery practices. The U.S. Department of Justice further claims the conglomerate obstructed its investigation, which started in 2022.

As alleged, the defendants orchestrated an elaborate scheme to bribe Indian government officials to secure contracts worth billions of dollars and lied about the bribery scheme as they sought to raise capital from U.S. and international investors,” said U.S. Attorney Breon Peace. 

Multinational conglomerate Adani Group, with interests in ports, airports, renewable energy amongst others, has yet to comment on the indictment.

Political Relationship of Adani and Market Blowback

Adani has been a close friend of the current Indian Prime Minister Narendra Modi and over the years has repeatedly been accused by opposition politicians of using his political network for illegal financial gain. He has repeatedly denied such charges. This indictment comes months after a 2023 report by a powerful firm accusing the Adani Group of fraud triggered a major market sell-off and put aspersions at the conglomerate’s operations.

In many cases, prosecutors say, Mr. Adani personally met with officials to advance the bribery scheme. The fallout from those allegations has tarnished the reputation of the 62-year-old tycoon, who ranks among India’s richest citizens.

The charges come amidst increasing scrutiny of international financial wrongdoing as the U.S. moves to maintain market integrity. They also follow the election victory of former President Donald Trump, whose new administration promised reform within the Department of Justice.

Recently, Adani congratulated Trump on his victory and announced a $10 billion investment in the United States. Despite the charges, however, the Adani business empire remains one of the most important players in global infrastructure and energy today. 

Further Development of the Case

The case is likely to further develop as the United States works on bringing accountability into international financial markets.