How Indian Billionaire Gautam Adani's Alleged Bribery Scheme Started and Fell Apart

In June 2020, a renewable energy company owned by Indian billionaire Gautam Adani secured what it described as the largest solar development contract in history, agreeing to supply 8 gigawatts of electricity to a state-run power company. However, local power distributors were unwilling to pay the prices offered by the state company, threatening the deal, according to US authorities. To salvage the contract, Adani allegedly decided to bribe local officials to convince them to purchase the electricity.

This allegation forms the core of criminal and civil charges against Adani, which were made public on Wednesday. Adani, who is not in US custody and is believed to be in India, has denied the charges, labeling them as “baseless” and pledging to pursue all legal avenues. The US Justice Department and the Securities and Exchange Commission (SEC) took notice of the reported bribes amounting to hundreds of millions of dollars offered to local Indian officials as Adani’s companies sought funding from US investors in several transactions starting in 2021.

The details of the alleged scheme are outlined in a 54-page indictment filed by federal prosecutors and two related SEC complaints, which rely heavily on electronic communications between the alleged participants.

In early 2020, the Solar Energy Corporation of India awarded Adani Green Energy, along with Azure Power Global, contracts for a 12-gigawatt solar energy project expected to generate billions of dollars in revenue. The project marked a significant milestone for Adani Green Energy, led by Adani's nephew, Sagar Adani, which up until then had earned only $50 million and had yet to post a profit, according to the SEC complaint.

However, the project faced challenges as local power distributors hesitated to purchase the solar power, anticipating that prices would fall in the future. Sagar Adani and the Azure CEO allegedly discussed the delays and hinted at bribes via encrypted messaging, with Sagar Adani reportedly acknowledging that "the optics are very difficult to cover." In February 2021, he allegedly mentioned that the incentives to encourage acceptance had been doubled.

In August 2021, Gautam Adani is said to have met with an official from Andhra Pradesh, offering $228 million in bribes in exchange for the state agreeing to purchase the power. By December 2021, Andhra Pradesh had agreed to buy the power, and other states followed suit. The SEC noted that Azure executives discussed rumors in December 2021 suggesting that the Adanis had facilitated the signing of these deals.

By March 2022, the SEC initiated an inquiry into Azure, asking about the company’s recent contracts and whether foreign officials had demanded anything of value. Meanwhile, Gautam Adani allegedly told Azure representatives in India that he expected to be reimbursed over $80 million for the bribes he had paid to officials to secure the contracts.

As Adani’s companies raised billions of dollars in loans and bonds, including from US investors, they continued to misrepresent their anti-bribery practices. In four separate fundraising transactions from 2021 to 2024, the companies provided investors with documents stating they had not paid bribes, which prosecutors argue constitutes fraud.

The FBI seized electronic devices from Sagar Adani during a visit to the US in March 2023, and in response, Gautam Adani reportedly emailed himself photographs of the search warrant. Despite this, Adani’s companies proceeded with a $1.36 billion syndicated loan in December 2023 and another bond sale in March 2024, once again providing misleading information to investors about their anti-bribery practices.

On October 24, 2023, a secret grand jury indictment was filed against Gautam Adani, Sagar Adani, and several associates involved in the scheme. The indictment was unsealed on November 20, causing a $27 billion drop in Adani Group companies' market value. Subsequently, Adani Green Energy canceled a planned $600 million bond sale.