On November 20, 2024, the SEC filed charges against Gautam and Sagar Adani of Adani Green Energy, along with Cyril Cabanes of Azure Power, for allegedly orchestrating a bribery scheme aimed at securing a multi-billion-dollar solar energy project from the Indian government.
The company, which raised capital from U.S. investors via American Depository Receipts (ADRs) on the Singapore Exchange in 2021, is accused of misappropriating funds from loans and bonds to unlawfully lobby for renewable energy initiatives in India, in violation of SEC regulations.
The announcement on November 20 led to a significant selloff of Adani Green Energy’s shares, which were already under pressure from market speculation, resulting in a drop of over 25% as the charges became public, with a trading volume of 33 million shares for the week.
In response to the allegations, the company has publicly refuted the claims, labeling them as baseless.
The Adani Group, one of India’s largest business conglomerates, has been embroiled in a series of controversies that have shaken investor confidence and attracted international scrutiny.
On January 24, 2023, Hindenburg Research accused the Adani Group of stock manipulation and accounting fraud, claiming the use of offshore shell companies to artificially inflate revenue and manipulate share prices. This report prompted a rapid market response, wiping out $150 billion from the group's market capitalization within a month, although the company vehemently denied these allegations.
In August 2023, the Organized Crime and Corruption Reporting Project (OCCRP) alleged that two funds based in Mauritius invested $430 million in Adani companies in 2017, with $1.4 million in fees reportedly paid to Vinod Adani, a relative of the group's founder.
By November 2023, demonstrations erupted in response to Adani's contentious acquisition of the Dharavi redevelopment project, with opponents expressing concerns that the initiative would disproportionately benefit the corporation at the expense of local inhabitants.
In August 2024, Hindenburg Research leveled accusations against SEBI Chairperson Madhabi Puri Buch and her spouse, alleging connections to offshore entities associated with Adani, which led to a decline in the group's stock value. Concurrently, Swiss authorities took action by freezing more than $310 million in funds linked to Adani.
This year, following a thorough investigation, the U.S. Securities and Exchange Commission (SEC) has filed charges against senior executives of Adani Green Energy for bribery and fraud. The inquiry revealed claims that Adani Green Energy and Azure Power engaged in bribery amounting to $250 million to Indian government officials in order to obtain profitable solar energy contracts.
Prosecutors contend that the money used for these bribes originated from U.S. investors, who were deceived when Adani Green Energy secured over $175 million through loans and bonds based on misleading information.
Adani Green Energy Limited, founded in 2015 and headquartered in Ahmedabad, India, specializes in the generation of renewable energy. The company operates solar power plants with a capacity of 7,393 MW, wind power plants totaling 1,401 MW, and hybrid facilities generating 2,140 MW.
The firm is owned by Gautam Adani, who began his entrepreneurial career in commodities trading in 1988. It is a subsidiary of the larger Adani Group, which is involved in various sectors such as infrastructure, energy, and logistics.
The Adani Group manages several key assets, including airports, India’s largest private port, and the Carmichael coal mine in Australia. Additionally, the company provides electricity to Bangladesh and, in 2023, acquired Haifa Port in Israel for $1.15 billion. The group comprises seven publicly listed companies and employs around 23,000 individuals.