U.S. officials have accused Indian billionaire Gautam Adani and a number of his colleagues in a $265 million fraud and bribery plot involving Adani Green Energy. According to the accusations, the Adani Group reportedly made $2 billion in profits over 20 years by bribing Indian government officials to land lucrative contracts in the renewable energy industry. The defendants are also accused of deceiving American investors and breaking anti-corruption laws, such as the Foreign Corrupt Practices Act (FCPA), according to the allegations, which were submitted by the U.S. Securities and Exchange Commission (SEC) in New York.
Sagar Adani, Adani’s nephew, and former executives from Azure Power, a renewable energy firm, are accused. These people are accused of misleading U.S. investors who donated more than $175 million in bonds and loans during a 2021 fundraising campaign by falsifying anti-corruption measures in financial reports.
The Adani Group has suffered significant financial consequences as a result of this legal action. Following the news, the share prices of major corporations, such as Adani Enterprises and Adani Green Energy, fell by 19–20% on the Indian stock exchange. Furthermore, Adani’s purported closeness to Prime Minister Narendra Modi has been criticized by Indian opposition parties, who have exploited the event to call for more thorough investigations.
This case highlights issues with corporate governance and transparency across the world, especially in developing nations. Arrest warrants have been filed for Adani and other defendants, who might be extradited to the US for prosecution as part of continuing legal processes.
Impact on Stock Market :
Major Stock Declines
- Adani Enterprises: Down by 20%
- Adani Green Energy: Down by 19.17%
- Adani Total Gas: Down by 18.14%
- Adani Power: Down by 17.79%
- Ambuja Cements: Down by 14.99%
- NDTV (New Delhi Television): Down by 14.37%
