In June 2020, Indian billionaire Gautam Adani’s renewable energy company secured what was described as the largest solar energy development contract ever awarded—a deal to supply 8 gigawatts of power to a state-owned company. However, U.S. authorities allege that the agreement faced complications when local power companies resisted the prices offered by the state entity, threatening the project’s viability. To salvage the deal, Adani allegedly resorted to bribing local officials to persuade them to purchase the electricity.
This accusation forms the basis of U.S. criminal and civil charges unveiled against Adani, who remains in India and denies the allegations, calling them “baseless.” The charges, according to U.S. prosecutors and the SEC, involve promises of hundreds of millions of dollars in bribes to Indian officials while Adani’s companies were raising funds from U.S. investors between 2021 and 2024.
The details of the alleged scheme, drawn from a 54-page indictment and parallel SEC complaints, reveal that in early 2020, Adani Green Energy and Azure Power Global were awarded contracts for a 12-gigawatt solar project. The deal promised substantial revenue, but Adani Green Energy, run by Adani’s nephew Sagar Adani, had minimal earnings at the time and had yet to turn a profit. The project soon encountered resistance from local state electricity distributors, who expected falling prices in the future.
Read More: How Long Would Elon Musk Last Spending $1,000,000 a Day? The Answer Is Astonishing!
According to the SEC, encrypted WhatsApp messages between Sagar Adani and Azure’s then-CEO, Ranjit Gupta, hint at bribes to address these hurdles. On November 24, 2020, Gupta allegedly mentioned that local companies were “being motivated,” to which Sagar responded, “Yup … but the optics are very difficult to cover.” Later, Sagar allegedly confirmed doubling “incentives” to expedite approvals.
By August 2021, Gautam Adani reportedly met with an Andhra Pradesh official, promising $228 million in bribes to secure the state’s agreement to purchase power. By December, Andhra Pradesh and other states had signed deals, with officials from these states allegedly promised bribes as well.
As Adani’s companies pursued international financing, they reassured investors of their compliance with anti-bribery laws, despite the alleged fraudulent activities. The SEC began probing in March 2022, sending a letter to Azure about its contracts and dealings with foreign officials. Prosecutors claim that Adani later sought $80 million in reimbursement for bribes he had paid, arranging a scheme with Azure representatives and an investor to obscure the payments.
The investigation escalated in March 2023 when FBI agents seized Sagar Adani’s devices during a U.S. visit, revealing potential violations of fraud and anti-bribery laws. Despite this, Adani’s companies proceeded with major financing deals, continuing to present misleading statements to investors.
In October 2024, a Brooklyn grand jury indicted Adani, his nephew, Gupta, and others involved. The unsealing of the indictment in November caused a $27 billion drop in the market value of Adani Group companies, forcing Adani Green Energy to cancel a $600 million bond sale.
