US Prosecutors Indict Gautam Adani, Nephew, and Others in Bribery Scandal

US prosecutors in New York have indicted Adani Group Chairman Gautam S. Adani, his nephew Sagar Adani, and six others for allegedly offering bribes worth Rs 2,200 crore (approximately $265 million) to Indian government officials to secure lucrative solar energy contracts.

The contracts involved supplying solar power to state electricity distribution companies through the state-owned Solar Energy Corporation of India (SECI).

The indictment, filed in the US District Court for the Eastern District of New York, accuses the defendants of bribery, misleading investors and banks, and obstructing justice.

Lisa H. Miller, US Deputy Assistant Attorney General, stated, “This indictment alleges schemes to pay over $250 million in bribes to Indian government officials, to lie to investors and banks to raise billions of dollars, and to obstruct justice.”

Among the accused are:

1. Vneet Jaain - CEO of Adani Green Energy Ltd.

2. Ranjit Gupta - Former CEO of Azure Power Global Ltd (2019-2022).

3. Rupesh Agarwal - Former Chief Strategy and Commercial Officer of Azure Power (2022-2023).

4. Cyril Cabanes - A dual citizen of Australia and France.

5. Saurabh Agarwal - Associated with a Canadian institutional investor.

6. Deepak Malhotra - Also linked to the same Canadian investor.

Allegations in the Indictment

The indictment outlines a scheme where bribes were offered to influence state electricity boards to sign power purchase agreements with SECI. A significant Rs 1,750 crore (approximately $228 million) was allegedly offered to a high-ranking official in Andhra Pradesh, identified as “Foreign Official #1,” to secure agreements for seven gigawatts of solar power under SECI’s Manufacturing Linked Project.

Gautam Adani is accused of personally meeting “Foreign Official #1” on three occasions between August and November 2021 to expedite these agreements. The indictment further revealed that coded references like “SAG,” “Mr. A,” “Numero uno,” and “the big man” were used to identify Gautam Adani, while Vneet Jaain was referred to as “V,” “snake,” and “Numero uno minus one.”

SEC Involvement

Simultaneously, the US Securities and Exchange Commission (SEC) charged Gautam Adani, Sagar Adani, and Cyril Cabanes with corruption-related offenses linked to the bribery scheme.

Adani Group Responds

The Adani Group is expected to release a formal statement. A spokesperson emphasized that the charges remain allegations, and the defendants are presumed innocent until proven guilty.

Context of the Bribery Scheme

The alleged scheme arose after SECI, despite securing solar power supply awards of 8 GW and 4 GW for Adani Green Energy and Azure Power, struggled to find buyers for the energy. The defendants allegedly orchestrated bribes to ensure state electricity distribution companies signed agreements with SECI to resolve this bottleneck.

Broader Implications

This case marks a significant international legal challenge for Gautam Adani and his associates. It also raises questions about governance and ethical practices in securing large-scale renewable energy contracts in India.