Gautam Adani charged in US: Allegations, rebuttals, and stock market wipeout

Billionaire Gautam Adani and his executives have been accused of paying bribes to obtain solar energy contracts. The allegations by US prosecutors raised a political firestorm back home and led to tanking of Adani Group shares. 

In Short

• Adani Group faces $265 million bribery allegations by US prosecutors.
• Adani Group refutes charges, calls allegations 'baseless', vows legal action
• Shares of Adani Group plummeted, investors lost over Rs 2.60 lakh crore

The Adani Group, one of nation’s largest conglomerates, is facing serious allegations of corruption as US prosecutors accused Gautam Adani and others of orchestrating a USD 265 million bribery scheme to secure state energy contracts. The Adani Group has dismissed the charges as "baseless".

The allegations have triggered a political storm in India, with opposition leaders accusing Prime Minister Narendra Modi of shielding Adani. The row has also had a significant impact on the financial markets, with Gautam Adani’s net worth falling by $12 billion in a single day.

Here’s what we know about Adani row so far:

1. US prosecutors alleged that Gautam Adani, his nephew Sagar, and six others conspired to pay USD 265 million in bribes to Indian officials to secure contracts worth USD 2 billion in profits over 20 years. The indictment claims Adani Green and Azure executives "knowingly" offered bribes to gain business advantages.
2. Gautam Adani and Sagar Adani face charges of securities fraud, conspiracy, and wire fraud. The US Securities and Exchange Commission has also filed a civil case against them. Arrest warrants have been issued in the US for Adani and his nephew Sagar and prosecutors plan to hand those warrants to foreign law enforcement, court records show.
3. The Adani Group denied all allegations, calling them “baseless” and vowed legal action. "We are a law-abiding organisation, fully compliant with all laws," the company said.
4. Adani Group executives have been accused of making false and misleading statements to investors and lenders in the United States regarding the company's anti-bribery commitments and practices while raising money from them.
5. US Prosecutors alleged bribes were directed at officials in Andhra Pradesh and other states, including Odisha, Tamil Nadu, Chhattisgarh, and Jammu and Kashmir, between 2021-2023 to secure solar power contracts.
6. An Andhra Pradesh government official has been named as "Foreign Official #1" in US court filing in Adani bribery case. The prosecutors said Rs 1,750 crore was offered as bribe to "Foreign Official #1".
7. All 10 listed Adani Group companies saw sharp declines, with Adani Enterprises falling over 23%. Investors in Adani Group’s 10 listed companies lost over Rs 2.60 lakh crore in market value during early trade today.
8. Kenyan President William Ruto announced the cancellation of a procurement process that would have granted the Adani Group control of the country's main airport. He also ordered the termination of a USD 736 million, 30-year public-private partnership agreement signed last month between the energy ministry and an Adani Group subsidiary to build power transmission lines.
9. Congress MP Rahul Gandhi accused PM Modi of shielding Adani and demanded the industrialist’s arrest. "Adani acquired India’s assets through corruption and supports BJP. We demand a Joint Parliamentary Committee and his arrest," Gandhi said.
10. The BJP, in its rebuttal, pointed out that the states named in the US indictment were ruled by opposition parties. "None of these states had BJP CMs," said party spokesperson Sambit Patra. Talking about the case, Patra said, “There are allegations and counter-allegations... The company will issue a statement and defend itself on its own. Law will take its own course."