Adani Green Energy: Why is Gautam Adani Facing Charges in US?

The US has accused billionaire Gautam Adani of a $265 million bribery and fraud scheme. An arrest warrant has been issued for him and his nephew. What happens next? Could Adani be arrested in the US? Check below.

Nov 21, 2024, 13:36 IST
An arrest warrant has been issued against Adani and his nephew.
An arrest warrant has been issued against Adani and his nephew.

The United States has charged billionaire businessman Gautam Adani with a $265 million alleged bribery and fraud conspiracy. According to the US prosecution, Adani, his nephew Sagar Adani, and six other defendants bribed Indian government officials to get contracts for solar energy supplies. 

The solar deal resulted in profits of more than $2 billion over a 20-year period. 

Adani Charged in America

The US Securities and Exchange Commission (SEC) in New York has indicted Adani and others on charges of breaching the Foreign Corrupt Practices Act (FCPA). A complaint was submitted to the Eastern District of New York US District Court.

According to an official news statement, “Adani Green raised over $175 million from US investors during the alleged scheme, and Azure Power’s stock was traded on the New York Stock Exchange.”

Why is Adani Charged?

The SEC lawsuit alleges that Adani and his nephew planned a bribery conspiracy to obtain above-market energy contracts that would have benefited Azure Power and Adani Green. Sagar Adani is the executive director of Adani Green, the company's green energy division.

The bribery allegedly occurred during Adani Green's September 2021 note offering, which garnered $750 million, including roughly $175 million from US investors. The complaint also claimed that Adani Green deceived US investors by making misleading statements regarding its anti-corruption initiatives in its selling materials.

Will Gautam Adani be Arrested?

An arrest warrant has been issued against Adani and his nephew, with prosecutors planning to share the warrants with foreign authorities. Adani and others are accused of breaking U.S. securities laws, including the FCPA, by misleading investors about their anti-corruption practices. They allegedly secured over $3 billion in loans and bonds while hiding corruption from lenders and investors.  

The Adani Group has denied the allegations, calling them baseless. In an official statement, they stated that Adani is innocent until proven guilty.

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Vidhee Tripathi
Vidhee Tripathi

Content Writer

Vidhee Tripathi completed her PG Diploma degree in Digital Media from Indian Institute of Mass Communication, New Delhi. She is a graduate in Science with chemistry honors from Banaras Hindu University. She has 2 years of experience in various aspects of journalism. She was previously associated with the social media wing of Akashvani. At jagranjosh.com, currently she covers current affairs, national news and international news. She is also associated with the education news section of Jagran Josh.

Certificate: Creative Writing, Problem Solving, Web Content Writing
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