Picture Credit: Words to Wisdom
Indian billionaire Gautam Adani, along with seven other executives, has been indicted by US prosecutors for their alleged involvement in a multi-million-dollar bribery and fraud scheme tied to a major solar power project.
The charges, announced by the United States Department of Justice on Wednesday, claim Adani and his associates promised over $250 million in bribes to Indian government officials to secure lucrative solar energy contracts.
The DOJ alleges that the contracts were projected to generate over $2 billion in profits over a 20-year period. Adani, who has an estimated net worth according to Forbes of nearly $70 billion, and other defendants reportedly held frequent meetings, using documents and digital evidence to plan and conceal their activities.This is a clear violation of the rights of investors and it is protected under US law by the SEC (Securities and Exchange Commission). Authorities have also revealed attempts to hide the alleged bribery from US investors to secure financing.
The indictment comes over a year after allegations of stock manipulation and accounting fraud by US short-seller Hindenburg Research. This significantly impacted Adani Group's market value as it caused a massive sellout of nearly $150 billion in market capitalization. The claims additionally also lead to India’s market regulator the SEBI (Securities and Exchange Board of India) to come under heavy scrutiny. Similarly, following the DOJ announcement, shares in Adani's listed companies fell by 10% to 20%, erasing nearly $30 billion in market capitalization.
Source: Google Knowledge Graph
The Adani Group has denied the charges, calling them “baseless” and reaffirming its commitment to compliance and governance standards. Adani Green, a subsidiary involved in the alleged scheme, announced it would halt a proposed $600 million bond offering in light of the charges.
The fallout has extended to Indian politics, with opposition parties renewing calls for a parliamentary investigation into Adani Group’s activities. The SEC has also filed related civil charges against Adani and other executives, accusing them of misleading US investors.
This case marks another significant challenge for Gautam Adani, once the world’s third-richest person, as his conglomerate continues to face scrutiny both domestically and internationally.
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