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Gautam Adani Indicted In US. Allegations Of Bribery And Fraud Rock The Billionaire’s Empire. Government’s Big Talk Of “Mr. Clean” Is Bought Under The Spotlight Yet Again. Bigger Question Who Received The Money?
It’s another whirlwind of headlines for Gautam Adani and, unfortunately, not for reasons to celebrate. Hailed as India’s “infrastructure czar,” Adani yet again finds himself in the middle of controversy this time embroiled in a legal battle in the United States, facing serious allegations of fraud and bribery. The man who rose to international prominence with ambitious green energy ventures is now under scrutiny, leaving many of us asking- who else knew, and more importantly, who else benefited?
The Charges
Gautam Adani, his nephew Sagar Adani, and several other executives from Adani Green Energy and Azure Power Global Ltd. have been charged with conspiracy to commit securities fraud, wire fraud, and violating the Foreign Corrupt Practices Act.
According to the US Securities and Exchange Commission (SEC), the scheme involved paying $265 million in bribes to secure lucrative solar energy contracts in India. The payoff? Expected profits of $2 billion over two decades.
Prosecutors allege that Adani and his team actively concealed the bribes to secure over $3 billion in loans and bonds, using deceptive tactics to lure global investors. Code names like “Numero Uno” and “the big man” allegedly used in their communications paint a picture of a well-organized operation.
The indictment lists Adani among several individuals accused of orchestrating a bribery and fraud scheme. The accused include high-ranking officials from Azure Power Global, such as Ranjit Gupta and Rupesh Agarwal, who allegedly facilitated bribes to secure contracts. Also implicated is Cyril Cabanes, a dual French-Australian citizen and former director at Azure Power Global, who worked with Canadian investor Caisse de Depot et Placement du Quebec.
Arrest Warrants
While most of the defendants are Indian citizens, international collaborations in these allegations underline the global scale of the controversy. Arrest warrants have been issued for Gautam Adani and his nephew Sagar Adani, with plans to involve foreign law enforcement in their execution.
With civil charges filed by the SEC against them and other executives. Deputy Assistant Attorney General Lisa H. Miller minced no words:
“This indictment alleges schemes to pay over $250 million in bribes, lie to investors and banks to raise billions of dollars, and obstruct justice.”
The allegations echo concerns raised in the Hindenburg Research report earlier this year, which accused the Adani Group of manipulating stocks and using offshore tax havens. That controversy wiped out a staggering $150 billion in market value and left investors rattled.
Bonds Before Bombshell
Interestingly, just hours before the indictment was announced, an Adani Group unit raised $600 million in the US corporate bond market, with the offering oversubscribed three times. Was this a calculated move to shore up funds before the news broke? Speculation abounds.
The bookrunners for the deal included heavyweight financial institutions like DBS Bank, Emirates NBD, and India’s own State Bank of India. This raises further questions about whether these entities were aware of the impending legal troubles.
Bigger Questions, Who Else Benefited?
Adani’s troubles go beyond the courtroom; they strike at the very center questioning governance and transparency in India. With accusations of bribing Indian officials, (although this is the norm right, how about electoral bonds, a “legal” way of bribing) one cannot help but ask, who received the money? Does this implicate others in positions of power?
For a government that touts its “Mr. Clean” image, these allegations only point to the cracks in the system. The scandal has also cast a shadow over India’s green energy ambitions, an area Adani Group heavily invests in and promotes globally.
Déjà Vu for Gautam Adani
This is the second major international controversy for Gautam Adani in less than a year. The Hindenburg report and now the US indictment point to a pattern of questionable practices that could erode investor confidence. Despite the Adani Group’s denials, the cloud of suspicion has only grown darker over the years.
Gautam Adani, now 62, the criminal charges in the United States have thrust his storied rise into the harshest of spotlights. With a net worth of $69.8 billion, as per Forbes, Adani ranks as the 22nd richest person globally and the second wealthiest in India, trailing only Mukesh Ambani of Reliance Industries. But how did a school dropout from Gujarat build such a sprawling empire, and what led to his fall from grace?
Adani’s story is one of rags to riches. Growing up in Gujarat, he left school at the age of 16, chasing dreams far bigger than academia could contain. In 1988, he founded Adani Group as a commodities trading firm. Over the decades, he expanded his reach into diverse sectors—airports, shipping ports, power generation, energy transmission, and mining—building one of the most influential conglomerates in India.
His success wasn’t just built on business acumen but also on leveraging opportunities presented by India’s growing economy. Adani’s ties with influential figures, including Indian Prime Minister Narendra Modi, have often sparked debates about the role of political patronage in his meteoric rise.
Investments and Global Aspirations
Adani’s ambitions have never been confined to just Indian shores; last week, he announced plans to invest $10 billion in U.S. energy security and infrastructure projects, projecting the creation of 15,000 jobs. This announcement, shared on social media platform X, came alongside a congratulatory message to U.S. President-elect Donald Trump.
Adani’s timing seemed strategic. Trump, known for his pro-energy policies, has promised to simplify regulations for energy companies, including easier access to drilling on federal lands and pipeline construction. These “timed” alignments clearly indicate Adani’s ability to manouver the complicated geopolitical scene.
Adani’s business dealings have long been linked to political power. Critics of Prime Minister Narendra Modi, also from Gujarat, allege that Adani enjoys protection from the government, shielding him from earlier allegations, including those raised in the Hindenburg report. Modi, however, has categorically dismissed these claims, calling them “lies and abuses.”
The recent charges, however, bring fresh perspectives to both Adani’s business empire and the political establishment accused of shielding him.
The Government’s Shield Around Gautam Adani. A Case of Favoritism or Strategic Mutual Gains?
Time and again, Gautam Adani’s meteoric rise has been linked to political patronage. From expanding his empire to weathering controversies, Adani’s proximity to the corridors of power—most notably to Prime Minister Narendra Modi—has raised eyebrows across the globe.
As the latest allegations of bribery and fraud in the U.S. shake his business empire, it’s worth examining how the Indian government has consistently shielded Adani from scrutiny, fueling accusations of blatant favoritism.
The relationship between Gautam Adani and Narendra Modi dates back to their shared roots in Gujarat. As Chief Minister of Gujarat, Modi oversaw policies that coincided with Adani’s rise, granting his group lucrative contracts and preferential access to state resources. When Modi ascended to the national stage as Prime Minister, Adani Group’s growth trajectory exploded, with significant inroads into ports, airports, energy, and defense.
Critics argue that this relationship is more than just a coincidence. For instance:
Airport Privatization Controversy: In 2018, the Modi government amended rules to allow private companies with no prior experience to bid for airport contracts. Adani Group, with no significant track record in managing airports, won bids for six major airports in India. This led to allegations of bending rules to benefit Adani.
Coal Block Allocations: The government’s reforms in coal block auctions have often been criticized as being tailor-made for major players like Adani Group, allowing them to acquire resources at favorable terms.
Foreign Allegations: The Hindenburg Research report accused Adani of improper financial practices, and while this rocked international markets, the Indian government largely stayed silent, dismissing the findings as “foreign conspiracy.”
All of the above clearly indicate that it is a shared story of success; therefore what’s in It for the Government?
The government’s defense of Adani is often portrayed as a strategic move to support India’s infrastructure development. Adani Group, with its expansive investments in critical sectors, is seen as a driver of India’s economic ambitions. But is there more to the story?
Let’s see –
Economic Optics: Adani’s global footprint paints a picture of Indian corporate prowess and the Modi government benefits from associating with such success stories to boost its “India Rising” story.
Political Financing: Allegations of crony capitalism suggest that businesses like Adani’s may indirectly fund political campaigns or projects, creating a quid pro quo dynamic. (again electoral bonds)
Strategic Leverage: By enabling Adani’s expansion, the government ensures control over key infrastructure sectors—ports, airports, and energy—which can serve as leverage in both domestic and international negotiations.
What Does Adani Gain?
Adani Group’s gains from its proximity to the government are both direct and indirect:
Policy Favors: Tailored regulations, expedited clearances, and access to government-backed loans have significantly reduced barriers for Adani’s ventures, as has been seen.
Global Credibility: Government support lends credibility to Adani Group’s international projects, attracting foreign investors who see it as a “safe bet.”
Market Confidence: In crises like the Hindenburg report, the government’s implicit backing helped stabilize Adani Group’s market position, minimizing investor panic.
Consequences of This Dynamic
The symbiosis between Adani and the government, however, is not without consequences.
International investors may begin to see India as a market where favoritism trumps fair competition, potentially discouraging foreign investments. When regulatory bodies and courts are perceived as lenient towards certain players, it weakens the fabric of a democratic and merit-based economy.
The government’s consistent defense of Gautam Adani raises uncomfortable questions about its priorities. Is it focusing on promoting a business-friendly environment at the expense of accountability? Or is this favoritism part of a calculated strategy to cement India’s position as a global economic powerhouse?
Regardless of the intent, this pattern of unwavering support risks creating a dangerous precedent—one where power and wealth are concentrated in the hands of a few, while the principles of fairness and competition are sidelined. For a democracy aspiring to global leadership, this is a dilemma that demands introspection and, more importantly, action.
The Last Bit
The details of the US government’s case are yet to fully disclose but for Gautam Adani, this is not just about clearing his name; it’s about salvaging the credibility of his empire that has repeatedly come under scrutiny for missteps. For India, it’s a moment to introspect on how the actions of one conglomerate can impact its global image.
As we watch this new episode, one thing that stands out clearly is that the truth, when it emerges, will reshape not just the Adani Group but also the larger question around corporate accountability and governance in India.
The question again is —will this be a turning point, or just another chapter of unchecked ambition?
