India's Adani Group Denies U.S. Bribery Charges, Calls Allegations 'Baseless'

One of India’s largest conglomerates, the Adani Group, denied on Thursday bribery allegations made by U.S. prosecutors, calling them "baseless" and stating that “all possible legal recourse will be sought.”  

On Wednesday, a New York court charged CEO Gautam Adani, his nephew Sagar Adani, and six other executives with bribery, securities fraud, wire fraud, and other conspiracies related to solar energy contracts.  

Prosecutors allege the defendants bribed Indian officials to secure contracts with the Solar Energy Corporation of India (SECI), which purchased solar-generated energy from the Adani Group and another company. Gautam Adani is accused of personally meeting a high-ranking official in Andhra Pradesh between August and November 2021 as part of the scheme.  

The indictment claims the Adani Group concealed the $250 million bribery scheme from U.S. investors and failed to disclose that it was under investigation by the FBI. Even when reports of the probe surfaced in March 2024, the conglomerate denied any knowledge.  

The Department of Justice (DOJ) said the scheme undermined financial market integrity and violated U.S. securities laws.  

Authorities said arrest warrants have been issued for Gautam Adani and other defendants.  

According to the indictment, the bribes were funneled through intermediaries and disguised as business expenses to secure favorable terms for SECI contracts and agreements with state power companies for solar electricity purchases. 

In response to the indictment’s public release, the Adani Group withdrew a planned $600 million U.S. bond offering. 

The charges have further damaged the company’s reputation, which was already under scrutiny following an August 2023 investigation by the Organized Crime and Corruption Reporting Project (OCCRP) alleging stock market manipulation by the group.  

The DOJ and the Securities and Exchange Commission (SEC) highlighted the case as a reminder of the need for transparency and accountability in international business operations. Acting U.S. Attorney Randy Grossman described the charges as a crucial step toward enforcing anti-corruption laws on a global scale.  

The Adani Group now faces a lengthy legal battle in the U.S., with significant implications for its international operations and investor confidence.