Billionaire Gautam Adani and Executives Charged in Massive Bribery and Fraud Scheme

In a significant development, the Securities and Exchange Commission (SEC) has charged Gautam Adani, the Chairman of Adani Green Energy Ltd., his nephew Sagar Adani, and Cyril Cabanes, an executive of Azure Power Global Ltd., with involvement in a massive bribery scheme. The allegations center around a scheme to secure a multi-billion-dollar solar energy project awarded by the Indian government.

According to the SEC, Gautam and Sagar Adani orchestrated a bribery scheme that involved paying or promising to pay hundreds of millions of dollars in bribes to Indian government officials. This was done to secure commitments to purchase energy at above-market rates, benefiting Adani Green and Azure Power. The scheme allegedly took place during a September 2021 note offering by Adani Green, which raised $750 million, including approximately $175 million from U.S. investors.

The SEC complaint alleges that the offering materials included false or misleading statements about Adani Green’s anti-corruption and anti-bribery efforts. Additionally, Cyril Cabanes is charged with Foreign Corrupt Practices Act (FCPA) violations for his role in facilitating the authorization of bribes while serving as a director of a U.S. public company.

The charges filed by the SEC seek permanent injunctions, civil penalties, and officer and director bars against all defendants. Parallel criminal charges have also been unsealed by the U.S. Attorney’s Office for the Eastern District of New York against Gautam Adani, Sagar Adani, and Cabanes, among others connected to the companies.

Gautam Adani, one of the world’s richest individuals and the chair of India‘s Adani Group conglomerate, has been indicted in New York federal court in connection with this alleged multi-billion-dollar fraud scheme. This development marks a significant legal challenge for Adani and his associated companies).