US charges Gautam Adani, nephew in $265 million bribery scandal linked to solar energy contracts

In a high-profile legal development, U.S. prosecutors in New York have charged Gautam Adani, chairman of the Adani Group, his nephew Sagar Adani, and six others in a case involving alleged bribery worth ₹2,029 crore (approximately $265 million).

The allegations center on attempts to secure lucrative solar energy supply contracts with Indian state electricity distribution companies.

The indictment, filed in the U.S. District Court for the Eastern District of New York, claims the accused offered substantial bribes to Indian government officials in exchange for favorable agreements.

Deputy Assistant Attorney General Lisa H. Miller commented on the case in a press release, stating, “This indictment outlines schemes involving over $250 million in bribes to Indian officials, misleading investors and banks to raise billions of dollars, and deliberate obstruction of justice.”

The defendants include prominent names from Adani Group and other organizations:

- Gautam Adani: Founder of the Adani Group

- Sagar Adani: Executive Director of Adani Green Energy Ltd

- Vneet Jaain: CEO of Adani Green Energy Ltd

- Ranjit Gupta: Former CEO of Azure Power Global Ltd (2019-2022)

- Rupesh Agarwal: Former Azure Power executive (2022-2023)

- Cyril Cabanes: Dual citizen of Australia and France

- Saurabh Agarwal and Deepak Malhotra: Former employees of a Canadian institutional investor

The U.S. Securities and Exchange Commission (SEC) has also filed complaints against Gautam Adani, Sagar Adani, and Cyril Cabanes for their alleged roles in the scheme.

The indictment highlights a corruption scheme involving an "Indian Energy Company" and a "US Issuer." These entities were awarded contracts to supply 8 GW and 4 GW of solar energy to the Solar Energy Corporation of India (SECI).

However, SECI could not finalize corresponding agreements with state electricity boards due to a lack of buyers.

Prosecutors allege that in 2020, the accused devised a plan to offer bribes to government officials, pushing them to compel state electricity boards to enter into power purchase agreements with SECI.

A significant portion of these bribes—₹1,750 crore ($228 million)—was reportedly linked to deals involving Andhra Pradesh’s electricity distribution companies.

Gautam Adani is accused of meeting a high-ranking Andhra Pradesh official, identified as "Foreign Official #1," on three occasions between August and November 2021 to advance the agreements.

In internal communications, Adani was reportedly referred to by codenames such as “SAG,” “Mr. A,” and “the big man,” while Vneet Jaain was called “V,” “snake,” and “Numero uno minus one.”

Congress leader Jairam Ramesh responded to the developments, stating that the charges validate his party's demands for a Joint Parliamentary Committee (JPC) investigation into what he termed "Modani scams."

An Adani Group spokesperson indicated that the company would soon release an official statement, emphasizing that the allegations remain unproven and the defendants are presumed innocent until proven guilty.

This indictment adds to the global scrutiny faced by the Adani Group, which has previously announced significant investment plans in the U.S., including a $10 billion commitment to energy infrastructure and job creation.

The legal and reputational consequences of this case could have far-reaching implications for the conglomerate and its leadership.

The SEC and U.S. prosecutors continue their investigations, signaling a robust legal challenge ahead for Gautam Adani and his associates.