Gautam Adani faces bribery charges, stocks plunge up to 23%. 5 things to know

Gautam Adani, the founder and chairperson of the Adani Group, is facing bribery charges filed by US prosecutors. The allegations claim that Gautam Adani, his nephew Sagar Adani, and others paid Rs 2,029 crore ($265 million) in bribes to secure solar energy contracts in India.
The developments come at a time when the Adani Group was attempting to recover from earlier accusations made by short-seller Hindenburg Research. Here are the key points about the case:
US prosecutors have alleged Gautam Adani and his associates of paying bribes to Indian government officials between 2020 and 2024, reported news agency Reuters. The aim was to secure power purchase agreements (PPAs) with state electricity distribution companies. These agreements were crucial for unlocking profits worth $2 billion for the Adani Group and its US partner.
The indictment claims that bribes were disguised through encrypted messages, code names, and falsified justifications. Prosecutors allege that project reallocation was carried out under the direction of Gautam Adani, falsely citing litigation and economic hurdles to mask the scheme.
Several high-profile individuals have been named in the case:
Gautam S. Adani: Founder of the Adani Group.
Sagar R. Adani: Nephew of Gautam Adani and a company executive.
Vneet S. Jaain: Former CEO of the Indian energy company involved.
Ranjit Gupta: Former CEO of the US issuer.
Other non-executive directors and consultants are also implicated in the bribery scheme.
The charges levelled by US prosecutors include:
Bribery: Payment of Rs 2,029 crore in bribes to Indian officials and attempts to obstruct US investigations by destroying evidence, withholding documents, and misleading regulators.
Securities and wire fraud: Raising over $2 billion from US investors and banks using false claims, including misleading statements about anti-bribery measures.
Violations of the Foreign Corrupt Practices Act (FCPA): The defendants obstructed a Securities and Exchange Commission (SEC) investigation by deleting emails and staging a fake internal inquiry to appear transparent.
The Adani Group has strongly denied allegations of bribery and securities fraud levelled by US prosecutors against its chairman, Gautam Adani, and other key executives.
The group dismissed the charges as “baseless” and maintained that it operates with the highest standards of integrity and compliance. It further stated its intent to explore all possible legal remedies to address the accusations.
“As stated by the US Department of Justice itself, “the charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty.” All possible legal recourse will be sought,” the Adani Group spokesperson said.
The allegations have caused significant disruption to the Adani Group’s financial plans:
The Adani group cancelled a $600 million bond offering within hours of pricing it, citing legal developments.
Adani Green Energy bonds fell sharply, with some dropping as much as 15%, marking the steepest decline since the Hindenburg Research report earlier this year.
Shares of Adani group felt the shockwaves of the allegations as stocks fell up to 20%. Shares of Adnai Enterprises crashed over 20% to Rs 2,245.80 on Thursday.
The accusations have reignited concerns about the group’s governance and transparency.
In response to the charges, Adani Green issued a statement.
“The US Department of Justice and the US Securities and Exchange Commission have issued a criminal indictment and brought a civil complaint, respectively, in the US District Court for the Eastern District of New York, against our Board members, Gautam Adani and Sagar Adani. In light of these developments, our subsidiaries have presently decided not to proceed with the proposed USD-denominated bond offerings.”