Washington (Web Desk): Gautam Adani, the Indian billionaire, has been indicted by US prosecutors for his alleged involvement in a $265 million bribery scheme, plunging his conglomerate into its second major crisis in just two years.
Along with his nephew, Sagar Adani, and several other executives, including the former CEO of Adani Green Energy, Vneet Jaain, the charges of securities fraud and wire fraud conspiracy were filed.
The US authorities accuse the defendants of paying bribes to Indian government officials to secure contracts for a solar power plant project, which was expected to generate $2 billion in profits over the next two decades.
The charges also allege that the Adanis and other executives raised more than $3 billion through loans and bonds, all while concealing their corrupt activities from investors and lenders.
This legal development follows the turmoil created by last year's Hindenburg Research report, which accused the Adani Group of improper offshore tax haven use—a claim the company has denied.
In response to the charges, shares of Adani Green Energy dropped sharply by 17%, and many other Adani companies also experienced significant losses.
The overall market value of the conglomerate plummeted by $28 billion, falling from $235 billion to $141 billion in just one day.
At the same time, the US Securities and Exchange Commission (SEC) filed a civil case against the Adanis, aiming to impose financial penalties and prevent them from holding executive roles in the future.
The indictment reveals that the conspirators referred to Gautam Adani using code names like "Numero uno" and "the big man," while his nephew allegedly used his cellphone to track details of the bribe payments.
Despite the charges, none of the accused are in custody, with Gautam Adani believed to be in India. The US authorities have issued arrest warrants for both Gautam and Sagar Adani, which will be handed over to foreign law enforcement agencies.
Gautam Adani, whose fortune is estimated at $69.8 billion, making him the second-richest person in India, now faces one of the rare cases of a billionaire being formally accused of criminal activity in the United States.
Meanwhile, GQG Partners, a major investor in the Adani Group, saw its shares drop 20%, highlighting the increasing concerns among investors.