The U.S. Securities and Exchange Commission (SEC) has summoned Indian billionaire Gautam Adani and his nephew, Sagar Adani, over allegations of bribery linked to a federal indictment. The SEC accuses the Adanis of orchestrating a scheme involving hundreds of millions of dollars in bribes to benefit an Adani company while misleading investors about compliance with anti-bribery laws during a $750 million bond offering.
The summons, filed in the U.S. District Court for the Eastern District of New York, requires a response within 21 days. The SEC is pursuing monetary penalties and a ban preventing the Adanis from serving as officers of publicly listed companies.
Federal prosecutors have also issued arrest warrants for the Adanis, alleging their involvement in a $265 million bribery scheme to secure power-supply contracts that were projected to generate $2 billion in profits over two decades. The contracts were tied to the development of what was to be India’s largest solar power plant.
Adani Group has dismissed the allegations as “baseless,” with the conglomerate’s CFO emphasizing that the indictment concerns a single contract under Adani Green Energy, representing about 10% of its business. The group stated that no other subsidiaries were implicated.
This marks a significant blow for the Adani Group, which has faced a series of controversies in recent years. The latest allegations have already impacted its market value, wiping out billions of dollars from the group’s stocks. Additionally, international repercussions are unfolding, with Kenya’s president canceling a major airport project with the Adani Group in light of the charges.
As one of the world’s richest individuals, 62-year-old Gautam Adani’s empire spans diverse sectors, including ports, power, and infrastructure. This crisis follows another significant controversy just two years ago, further intensifying scrutiny of the conglomerate’s practices and global dealings.
