Gautam Adani Charged in $250 Million Bribery Plot

The Adani Group has come under scrutiny after US prosecutors charged its founder, Gautam Adani, and others with alleged involvement in a $250 million bribery plot. The charges, which surfaced on Wednesday, accuse Adani of conspiring to pay bribes to secure major solar energy contracts in India, raising concerns among investors globally.

What’s the Case About?

The US Department of Justice claims Adani and his nephew, Sagar Adani, promised bribes to Indian government officials between 2020 and 2024. These contracts were reportedly worth $2 billion in profits over two decades. The indictment also mentions code names like “Numero Uno” used to reference Gautam Adani and alleges the use of personal devices to track the bribes.

Adding fuel to it, prosecutors say executives at Adani Green Energy, including Vneet Jaain, hid these activities while raising over $3 billion through loans and bonds. The charges, tied to the US Foreign Corrupt Practices Act, have gathered global attention.

Ripple Effect on the Market

The timing couldn’t have been worse. Hours before the charges surfaced, the Adani Group had announced a $600 million bond offering, which was scrapped immediately after the news broke.

Investors didn’t take the news lightly. Bonds from Adani Green Energy dropped by 15 cents, marking a record plunge, while Adani Electricity Mumbai’s 2030 notes fell 8.2 cents. For many, this felt like déjà vu after the Hindenburg Research report in 2023 that accused Adani of fraud and led to a $150 billion stock wipeout.

Conclusion: This has reignited debates about governance and transparency in emerging markets. While the Adani Group has previously denied allegations like those from Hindenburg, this case feels heavier, especially with US authorities issuing arrest warrants for both Gautam and Sagar Adani. As things settle, investors and stakeholders will be watching closely to see how this unfolds, and whether the group can bounce back yet again.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.