Indian tycoon Gautam Adani involved in a million-dollar bribery scheme in New York
The billionaire allegedly paid over $250 million to obtain lucrative contracts related to energy projects.
The chairman of the Indian conglomerate Adani Group, Gautam Adani, has been charged with bribery.
Gautam Adani, one of the world's richest tycoons, faces charges in New York for an alleged million-dollar bribery scheme and for concealing this scheme from investors in the United States.
According to the U.S. Attorney's Office for the Eastern District of New York, Adani, whose fortune is valued at over $85 billion, used his influence to bribe Indian government officials and secure solar power contracts through his company Adani Green Energy. Along with Adani, other individuals are also accused of participating in the scheme, which prosecutors say involved the paying more than $250 million in bribes to secure lucrative contracts related to energy projects.
Prosecutors detailed that Adani personally met with Indian officials to discuss the bribery scheme, which authorities said was an essential part of the scheme. Subsequently, the company attempted to raise funds from U.S. and international investors by submitting false information about the nature of the contracts obtained.
SEC civil complaint
The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint related to the case, accusing Adani Green Energy of raising more than $175 million from U.S. investors under false representations.
Violation of the Foreign Corrupt Practices Act
One of Adani's associates was also charged with conspiring to violate the Foreign Corrupt Practices Act (FCPA), which prohibits companies operating in the United States from bribing officials in other countries. Other Adani Green Energy executives, including Sagar R. Adani, the tycoon's nephew, and Vneet S. Jaain, were also included in the charges, along with former employees of a Canadian investor involved in the scheme.
History of accounting fraud allegations
This case comes nearly two years after Adani Group, Adani's business conglomerate, was accused by Hindenburg Research of accounting fraud and stock manipulation. At the time, Hindenburg's report caused a steep fall in the group's shares, although Adani has denied all allegations of fraud.
LATEST
