Gautam Adani, India’s second-richest person, has been charged by U.S. federal prosecutors with fraud, accused of orchestrating a bribery scheme involving $250 million in alleged bribes to Indian officials to secure billions in solar-power contracts. The scheme allegedly involved obtaining funds from U.S. and international investors under false pretenses. Adani’s nephew, Sagar Adani, is also named as a defendant in the case. The Adani Group, led by Gautam Adani and worth around $70 billion, is an industrial conglomerate with stakes in logistics and energy units, though the group itself is not named in the indictment.
Additionally, the Securities and Exchange Commission has brought civil fraud charges against Gautam Adani and Adani Green Energy Ltd., a unit of the Adani Group. This comes after a prominent short-seller, Hindenburg Research, accused the Adani Group of fraud in its official filings, causing Adani Group shares to initially drop. However, the shares eventually recovered following a favorable ruling by India’s Supreme Court regarding the allegations. Adani has also received direct support from Indian Prime Minister Narendra Modi, which has been highlighted by India’s opposition party.
Representatives for Adani have not yet commented on the charges. Hindenburg Research stands by its findings and claims that Adani is the “largest corporate con in history.” This recent legal trouble adds to the ongoing scrutiny of the Adani Group’s business practices.
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