Gautam Adani again suspected of fraud: American justice has indicted the Indian energy magnate for corruption, putting his conglomerate in difficulty which collapsed on the stock market on Thursday and had to cancel a financial transaction.
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Known to be close to Indian Prime Minister Narendra Modi, Gautam Adani, 62, is suspected of being involved in paying bribes to Indian officials to obtain solar energy contracts in India, to the detriment of investors in the United States.
At the opening of the Bombay Stock Exchange, the price of the holding company Adani Enterprises fell by 10% on Thursday while that of its subsidiary Adany Energy Solutions, directly targeted by American justice, lost nearly 20%.
The latter decided to cancel a planned sale on the financial markets of debt securities denominated in US dollars.
Asked by AFP, the Adani group did not react immediately.
According to Brooklyn federal prosecutor Breon Peace, the multi-billionaire is accused, along with seven co-defendants, of having participated between 2020 and 2024 in a bribe payment system of more than $250 million.
Gautam Adani, one of his nephews at the head of the Adani Green Energy subsidiary, Sagar Adani, and a third manager are also being prosecuted for having hidden “this system of corruption while they sought to raise funds from investors American and international.
Gautam Adani was charged with securities fraud and wire fraud.
Proximity
According to the prosecution, the suspects “extensively documented their acts of corruption”, notably Sagar Adani with his mobile phone.
Gautam Adani “met personally with a representative of the Indian government to implement this corruption plan and the accused met in person to discuss aspects of its implementation,” accuses the prosecution.
The affair once again throws into trouble the Adani empire, a group whose activities extend from coal mines and renewable energies to ports and airports and even the media.
In India, opposition parties and civil society have long accused the businessman of having taken advantage of his relationship with Mr. Modi, like him from the state of Gujarat (northwest), to build his fortune by winning markets unfairly.
Questioned in October by AFP during a press trip to India, Sagar Adani firmly denied these allegations.
“There is no political link” between the group and the government, he insisted. “All the projects we carry out have not been conceded but awarded following an independent and transparent tender system.”
On Thursday, Jairam Ramesh, a spokesperson for Congress, the main opposition movement, estimated that the American investigation “justified” these criticisms and the establishment of a parliamentary commission of inquiry into the group’s activities.
In 2023, the Adani Group was also accused of “brazen manipulation” of its own stock prices and “multi-decade accounting fraud” by the American investment company Hindenburg Research.
Renewable energies
Gautam Adani rejected these accusations, but his group saw its stock market value cut by more than $150 billion and his personal fortune fall by $80 billion.
The tycoon, second-richest in India according to the 2024 ranking of the American magazine Forbes, and his company have since compensated for a large part of these losses.
In recent years, the Adani group has launched a vast offensive on renewable energies, a strategic sector for India – the most populous country in the world and third largest emitter of greenhouse gases.
In Gujarat, near the Pakistani border, the group is building, with the French group TotalEnergies, the largest renewable energy park in the world (solar and wind), with an area equal to five times that of Paris.
Born into a middle-class family in Ahmedabad, the capital of Gujarat, Gautam Adani dropped out of school to work briefly in the diamond industry before starting his trading business in 1988.
In 1995, the businessman, who was then seeking to diversify his activities, won the contract to build and operate the commercial port of Mundra, which has since become the largest in India.
At the same time, he engaged in thermal power generation and coal mining at home and abroad.
