Gautam Adani charged with bribery in the US; opposition seeks probe

US Charges Gautam Adani with Bribery; Opposition Demands Investigation

Written by: Supriya Kadu

Edited by: Pinky Deshmukh

Last Updated: November 21, 2024

Summary: Gautam Adani and seven other people were charged by US authorities with bribing Indian government officials to obtain solar power contracts, allegedly for a total of Rs 2,029 crore.

The opposition criticized the Center on Thursday over its purported ties to the Adani Group, while billionaire Gautam Adani is being charged in the United States for suspected bribery and fraud.

Gautam Adani faced difficulties after US prosecutors charged him, his nephew Sagar Adani, and six other people with bribing Indian government officials to obtain solar power contracts with state electricity distribution companies, allegedly for a total of Rs 2,029 crore ($265 million). These bribes were paid between 2020 and 2024.

The same time as the 2023 publication of crucial research by Hindenburg Research, a short seller based in the United States. The Adani Group was charged with accounting fraud and stock manipulation. It caused the market capitalization of the Adani Group to drop by $150 billion.

According to US authorities, this information was kept a secret from US banks and investors, who helped the Adani Group secure billions of dollars for the solar energy project. By winning the energy contracts, the Adani Group expected making $2 billion.

The Congress responded to the accusations by requesting that a Joint Parliamentary Committee (JPC) look into claims of fraud involving Adani's company. The party also called for the nomination of a "new and credible" Sebi chief to look into Adani's financial transactions and compliance with securities regulations.

The US Securities and Exchange Commission's (SEC) actions, according to Congress leader Jairam Ramesh, show how Indian institutions failed to look into the group. Ramesh said on X, “The indictment vindicates Congress’s demand since January 2023 for a JPC into the Modani scams.”

According to US prosecutors, the conspirators also used code names to conceal their involvement. For instance, "Numero Uno" or "The Big Man" was the nickname given to Gautam Adani. The encrypted messaging was used for the conversation.