India’s Adani Group is facing significant legal challenges in the United States, as the U.S. Securities and Exchange Commission (SEC) and federal prosecutors accuse the conglomerate’s executives of orchestrating a $250 million bribery scheme. The charges, filed in connection with the company’s solar energy contracts in India, allege that Gautam Adani, Chairman of the Adani Group, and his nephew Sagar Adani, along with two top executives of Adani Green Energy Limited, Vneet Jaain and others, misled U.S. and international investors about the company’s anti-bribery and anti-corruption practices.
According to the SEC and media reports, the Adani Group executives allegedly bribed Indian government officials to secure solar energy supply contracts worth more than $2 billion. The bribes, totaling over $250 million, were reportedly used to influence the purchase of energy at inflated prices, thereby ensuring substantial profits for Adani Green Energy and other associated companies. The SEC claims that this scheme was orchestrated during a bond offering by Adani Green Energy in September 2021, in which the company raised $750 million, including approximately $175 million from U.S. investors.
The indictment also reveals that the Adani Group executives misled investors by issuing false statements about the company’s compliance with anti-corruption laws. This includes claims that Adani Green Energy’s offering materials contained misleading statements about the company’s anti-bribery efforts, despite the ongoing bribery activities. The SEC alleges that the scheme was part of a larger effort by the Adani Group to secure and finance massive state energy supply contracts through corruption, putting U.S. investors at a disadvantage.
This legal action comes amid ongoing controversies surrounding the Adani Group’s operations in Sri Lanka. The company is facing a legal challenge over its wind energy project in the Mannar region, where it won a contract without going through competitive bidding. Local activists and environmental groups have raised concerns about the project, arguing that it was awarded at a much higher price than other renewable energy projects that followed competitive tenders. Critics claim that such deals are often facilitated by ‘feed-in tariffs,’ which are set through lobbying efforts and often result in inflated project costs.
The Sri Lankan government awarded the wind power deal to Adani Green Energy without an open competitive process, which has raised alarm about transparency and the potential for corruption. This deal is part of the company’s broader push into Sri Lanka’s renewable energy sector, where it has faced growing scrutiny.
The U.S. charges are part of a broader investigation into the Adani Group’s global business dealings, including allegations of financial misconduct and manipulation of energy markets. These legal battles have raised questions about the group’s ethical practices and the extent to which such corporate actions could undermine investor confidence in the renewable energy sector. Environmental and human rights groups have also voiced concerns over Adani’s environmental impact and its business relationships with governments in India and Sri Lanka.
The SEC’s investigation, which is ongoing, also involves former executives of other companies, including Azure Power Global, a renewable energy firm, and former employees of a Canadian institutional investor. Prosecutors have stressed that the Adani Group’s actions demonstrate a larger pattern of corporate corruption that prioritizes profits over ethical business practices.
This legal and ethical turmoil is a significant blow to the Adani Group, which has been one of India’s most prominent and rapidly growing conglomerates. The group’s renewable energy ventures, which are central to its long-term strategy, may face further scrutiny in light of these allegations. The case highlights the complex challenges faced by major corporations in the renewable energy industry, particularly when it comes to transparency, governance, and ethical business practices.
