Adani stocks crash up to 20% after Gautam Adani indicted by US over alleged $250 million bribe plot
Gautam Adani, the chairman of the Adani Group, has been indicted by U.S. prosecutors on charges related to a substantial bribery scheme. The indictment alleges that Adani and several executives promised to pay over $250 million in bribes to Indian government officials to secure solar energy contracts. This scheme is said to have involved misleading U.S. investors while raising more than $3 billion in capital for energy contracts.
Charges Filed: The indictment includes charges of securities fraud conspiracy, wire fraud conspiracy, and securities fraud against Gautam Adani, his nephew Sagar Adani, and Vneet Jaain, among others.
Bribery Scheme Details: It is alleged that the defendants engaged in extensive planning and communication regarding the bribery, including using code names and electronic messaging apps to discuss their actions. They reportedly documented their bribery efforts meticulously.
Impact on Stocks: Following the announcement of the charges, shares of Adani Group companies plummeted significantly, with Adani Green Energy’s stock falling by 16% and Adani Enterprises down by 10%. The group also canceled a proposed $600 million bond sale as a direct response to the indictment.
The indictment poses a serious threat to the Adani Group’s reputation and financial stability, especially as it comes on the heels of previous scrutiny regarding alleged fraud by short-sellers earlier this year. The U.S. Securities and Exchange Commission (SEC) has also filed civil complaints against those involved, seeking penalties and barring them from future corporate positions.
This legal situation not only jeopardizes Adani’s business interests but also raises concerns about corporate governance and compliance within one of India’s largest conglomerates.
