After Hindenberg Row, Gautam Adani Again in Soup in US, Charged With Bribery and Fraud; Shares Tumble, Opposition Reacts

By Cross Talk India Team Last updated Nov 21, 2024

Gautam Adani: This morning brought significant challenges for Gautam Adani, chairman of the Adani Group and one of the richest individuals in the world. Adani woke up to allegations of a $265 million bribery and fraud case. According to the United States Attorney’s Office, Eastern District of New York, over $250 million in bribes were allegedly promised to Indian government officials to secure solar energy contracts, which generated billions of dollars in revenue.

This explosive revelation has stirred significant buzz among political parties and in the share market. Notably, Hindenburg Research, the short-selling firm that previously targeted the Adani Group, has also weighed in on this matter.

Allegations Against Gautam Adani: Bribery and Fraud Under the Spotlight

Reports suggest that the indictment accuses Gautam Adani and his team of fabricating details to secure loans and bonds worth over $3 billion. They face charges under the US Foreign Corrupt Practices Act. Prosecutors revealed the use of code names like “Numero Uno” and “The Big Man” for Adani. Arrest warrants have been issued against Gautam Adani, his nephew Sagar Adani, and several others.

Deputy Assistant Attorney General Lisa H. Miller stated, “This indictment alleges schemes to pay over $265 million in bribes to Indian government officials, lie to investors and banks, and obstruct justice.”

Between 2020 and 2024, the Adani Group allegedly promised over $250 million in bribes to secure solar energy contracts. Furthermore, reports claim that Gautam Adani personally met a government official to push the bribery scheme. Adani, along with Sagar Adani and Vneet Jaain, is accused of concealing the scheme while seeking international investments.

Stock Market Reels as Adani Shares Tumble Over 21%

The news of bribery and fraud against Gautam Adani sent shockwaves through the stock market. On Thursday, November 21, at 11:35 AM, the Nifty 50 fell by 0.74%, trading at 23,340, while the Sensex declined by 0.66% to 77,075. Most Adani shares were significantly affected.

Adani Enterprises Ltd fell 20.53%trading at ₹2,246 per share.
Adani Ports & SEZ Ltd saw a 16.09% drop, trading at ₹1,080 per share.
Adani Green Energy Ltd experienced a 17.68% fall, trading at ₹1,162 per share.
Adani Power declined 11%trading at ₹465 per share.
Adani Energy Solution Ltd plummeted 20%trading at ₹697 per share.
Adani Total Gas Ltd fell 13.18%now at ₹583 per share.
Adani Wilmar Ltd dropped 10%trading at ₹294.90 per share.

Political Parties React to Allegations of Bribery and Fraud Against Gautam Adani

Congress’s Response

The framing of serious charges against Gautam Adani and others associated with him by the US Attorney’s Office for the Eastern District of New York justifies the demand the Indian National Congress has been making for a Joint Parliamentary Committee (JPC) probe into the various Modani scams by January 2023. Congress has…

— Jairam Ramesh (@Jairam_Ramesh) November 21, 2024

Congress MP Jairam Ramesh took to These allegations reveal more shocking details about Adani’s criminal activities.”

He further alleged that the bribes, amounting to ₹2,100 crore, were paid to secure contracts for India’s solar power projects, generating post-tax profits exceeding ₹16,800 crore. Ramesh also highlighted Congress’s unanswered questions about the alleged ties between PM Modi and Gautam Adani.

AAP’s Statement

Modi ji, your friend has brought bad name to the country in the entire world.
Gautam Adani faces serious allegations in America, the case is related to giving bribe of 265 million dollars to Indian government officials. https://t.co/tA99zvrget

— Sanjay Singh AAP (@SanjayAzadSln) November 21, 2024

AAP leader and Rajya Sabha MP Sanjay Singh also targeted Gautam Adani, tweeting: “Modi ji, your friend has defamed the country’s name all over the world. Gautam Adani faces serious charges in the US of giving a bribe of $265 million to Indian government officials.”

Hindenburg Research Reactions

BREAKING: Gautam Adani and 7 other executives criminally indicted in the US over $250 million in alleged bribes.

The SEC has filed parallel charges in the “massive bribery scheme”.https://t.co/uWULHHI7Ab

— Hindenburg Research (@HindenburgRes) November 20, 2024

Hindenburg Research, the short-selling firm that previously accused the Adani Group of stock manipulation, shared the news on X, stating:
“BREAKING: Gautam Adani and 7 other executives criminally indicted in the US over $250 million in alleged bribes. The SEC has filed parallel charges in this massive bribery scheme.” Hindenburg previously accused the Adani Group of financial irregularities and profited by short-selling its stocks.

Adani Green Issues Official Statement

US prosecutors charge Gautam Adani and others in alleged Solar Energy contract bribery case

Adani Green says, “The United States Department of Justice and the United States Securities and Exchange Commission have issued a criminal indictment and brought a civil complaint,… pic.twitter.com/uoBDJPuhOE

— ANI (@ANI) November 21, 2024

In response to the allegations, Adani Green Energy Ltd issued a statement in a stock market filing, stating: “The United States Department of Justice and the SEC have filed a criminal indictment and civil complaint, respectively, against Gautam Adani, Sagar Adani, and Vneet Jain. In light of these developments, our subsidiaries have decided not to proceed with the proposed USD-denominated bond offerings.”

The Adani Group assured stakeholders that it is cooperating with legal authorities and has taken measures to address the allegations.

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