The high-profile controversy engulfing one of India’s richest businessmen, the face of the Adani Group, Gautam Adani, casts an environmental damage case against him. A US Federal Court in New York has summoned Gautam Adani and six others to respond to allegations of bribery amounting to ₹2,000 crore to secure solar energy contracts in India and issued arrest warrants for Gautam Adani and his associates.
Major Allegations in the Federal Case
The US Attorney’s Office states that Gautam Adani and his associates offered Indian officials a bribe of ₹2,000 crore in exchange for corrupt solar energy contracts between 2020 and 2024 to award them lucrative contracts.
- High-profile names Involved with Accusations:
- Besides Gautam Adani, there is another list of people accused, including his nephew Sagar Adani and Vineet Jain. Other names featured include Cyril Cabanes, Saurabh Agrawal, Deepak Malhotra, and Rupesh Agrawal, who allegedly masterminded a plot to hinder investigations by U.S. authorities like the FBI and the SEC (Securities and Exchange Commission).
- Tampering with evidence:
The court was told that the accused deleted critical emails, messages, and analyses to conceal evidence about the bribery scheme. - Funds Raised Illicitly:
The company, Adani Green Energy, reportedly had raised $3 billion from U.S. and international investors for these projects.
Adani Green Energy’s Solar Project
Adani Green Energy is building one of the world’s largest solar power plants in Khavda, Gujarat, with a projected capacity of 30,000 MW. This is one of the main projects in the case against bribery – the estimated profit from this project was estimated to reach over $2 billion in 20 years.
Impact on Adani Group’s Businesses
This has already impacted the Adani Group’s financial position
- Stock Price Crash: Shares of Adani Energy Solutions fell by 1.33%, Adani Green Energy dropped by 2.33%, and Adani Total Gas saw a decline of 2.13% after the news broke.
- Adani’s U.S. Investments: Just days before the allegations came to light, Gautam Adani had announced a whopping $10 billion investment in the U.S., expecting to generate 15,000 jobs.
Previous Controversies
This is not the first time Gautam Adani and his conglomerate have faced accusations against themselves.
- Hindenburg Report: In January 2023, Hindenburg Research accused the Adani Group of stock manipulation and money laundering, leaving a gaping hole of $12 billion in the group’s market value.
- Coal Import Scam: The reports alleged that Adani Group imported low-grade coal from Indonesia at discounted prices but labeled it as high-grade coal, overcharging the consumers with exaggerated costs.
- Overpayment of Imported Coal:Audits of 30 Indonesian imports from 2019 to 2021 found that it was overpaid by a whopping ₹582 crore in import bill differences.
Gautam Adani Business Empire
Adani Group started as a small commodity trading firm in 1988 and has since grown into a diversified conglomerate spanning renewable energy, mining, coal trading, logistics, and much more. The group has committed $70 billion toward becoming the world’s largest renewable energy producer by 2030.
- Role of Sagar AdaniA graduate of Brown University, Sagar Adani oversees the group’s energy business, focusing on renewable projects.
- Adani Foundation: Established in 1996 by Priti Adani, the foundation caters to social initiatives benefiting more than 3.4 million across 18 Indian states annually.
Future Impact
Allegations against Gautam Adani would shake this business leader to his foundations, not only in terms of global reputation but also regarding the outlook of the Adani Group. Ongoing investigations, and arrest warrants issued against one of India’s most influential industrialists, show the road ahead is challenging.
This blog is an overview of the allegations and their potential impact on the Adani Group’s future.
