JUSTICEBURG HITS ADANI

US Justice Dept accuses billionaire Gautam Adani and his nephew Sagar of paying over Rs 2,100 crore bribe to Indian officials to win solar power contracts; worst day for Adani group stocks since Hindenburg report crisis in January 2023

Billionaire Gautam Adani has been charged by US prosecutors for allegedly being part of a scheme to pay over USD 250 million (about Rs 2,100 crore) bribe to Indian officials in exchange of favourable terms for solar power contracts.

Adani, India's second-richest man, has been charged with bribery and securities fraud in two separate cases brought by US authorities -- a criminal indictment by the US Department of Justice in a New York court that charges him and seven others including his nephew Sagar with paying bribes to unidentified officials of state governments like those in Andhra Pradesh to buy expensive solar power, potentially earn more than USD 2 billion profit over 20 years.

New Delhi-headquartered Azure Power too was part of the alleged bribery scheme, according to the suit.

Separately, the US Securities and Exchange Commission also charged Gautam and Sagar Adani and an Azure Power executive with “violating the antifraud provisions of the federal securities laws”.

While the Adani group did not immediately respond to requests for comments, it scrapped a USD 600-million bond issue by renewable energy arm Adani Green Energy Ltd.

Action hours after 3X bond subscription

The issue was oversubscribed three times hours before the indictment.

“In light of these developments, our subsidiaries have presently decided not to proceed with the proposed USD denominated bond offerings,” Adani Green Energy said in a stock exchange filing.