The Adani indictment: Why alleged bribery in India was investigated in the US

New Delhi: Gautam Adani, the billionaire chairman of India's Adani Group, along with several associates, has been indicted in the United States for orchestrating a $265 million bribery scheme aimed at securing solar energy contracts in India. 

The U.S. Department of Justice (DoJ) and the Securities and Exchange Commission (SEC) have taken up the case, alleging that Adani and his co-defendants engaged in corrupt practices to win contracts expected to yield over $2 billion in profits over two decades. 

The investigation centred around Adani Green Energy Ltd. and its dealings with Indian state electricity distribution companies, facilitated through alleged bribes to government officials.

The involvement of U.S. authorities stems from the fact that Adani Green Energy raised significant capital from U.S. investors, which included over $175 million during the scheme. 

The accusations include not only the payment of bribes but also the misrepresentation of the company's anti-corruption policies to investors, thereby violating U.S. securities laws. This has led to charges of securities fraud, wire fraud, and conspiracy to violate the Foreign Corrupt Practices Act.

The case has led to immediate financial repercussions, with Adani Group shares plummeting, wiping out approximately $28 billion in market value in a single trading session. Additionally, the company had to call off a proposed $600 million bond sale in response to the news.

However, the Adani Group has vehemently denied these claims, stating that the charges are baseless and that they remain committed to the highest standards of governance and compliance.