Indian billionaire Adani is to be arrested in the United States on bribery charges

Indian tycoon Gautam Adani has been indicted by U.S. prosecutors for his alleged role in a $265 million bribery scheme, plunging his conglomerate into crisis for the second time in two years.

Reuters reported Thursday (Nov. 21) that Adani, one of the world's richest men, and seven other defendants were charged with multiple counts of fraud, sending shares and bonds of Adani companies tumbling Thursday. Adani Green Energy, the company at the centre of the allegations, cancelled a $600m bond sale.

Arrest warrants have been issued for Gautam Adani and his nephew, Sagar Adani, and prosecutors plan to turn them over to foreign law enforcement, according to court records.

Last year, short seller Hindenburg Research published a report accusing Adani Group of improper use of offshore tax havens. The Adani group, which has since been plunged into turmoil, denies the report's allegations.

Federal prosecutors said the defendants agreed to pay bribes to Indian government officials to secure contracts that were expected to generate $2 billion in profits over 20 years and develop India's largest solar power plant project.

They also say the Adani brothers and another executive of Adani Green Energy's former chief executive, Vneet Jaain, hid related corrupt practices from lenders and investors when they raised more than $3 billion in loans and bonds.

The three were charged with securities fraud, securities fraud conspiracy and wire fraud conspiracy. The Adani family is also charged in a parallel civil case with the US Securities and Exchange Commission (SEC).

"Gautam and Sagar Adani participated in the bribery scheme during Adani Green Energy's September 2021 bond issue to raise $750 million, including approximately $175 million from U.S. investors," the SEC said in a press release.

"The SEC's complaint against Gautam and Sagar Adani alleges that they violated the anti-fraud provisions of the federal securities laws. The charges seek permanent injunctions, civil penalties and bans on officers and directors from their activities."

Representatives of the Adani Group did not respond to repeated requests for comment. Indian authorities, including the Securities and Exchange Board of India (SEBI), also did not respond to requests for comment on the US allegations.

Shares in Adani Green Energy plunged 17 percent, while shares in many of the group's other companies fell more than 10 percent. The group lost $28 billion in market value in Thursday's trading, bringing the total value of its companies to $141 billion. Before the Hindenburg report last year, the group's market value was $235 billion.

Adani's dollar bonds plunged, with the price of Adani Port and Special Economic Zone bonds falling between three cents and five cents.

According to Forbes magazine, Gautam Adani is worth $69.8 billion, making him India's second richest man after Mukesh Ambani. Gautam Adani is one of a handful of billionaires to be formally charged with criminal wrongdoing in the United States.