India's Largest Infrastructure Conglomerate Adani Indicted for Bribery Charges in the US

Bribery of Indian Officials to Secure Solar Power Project Rights
Also Accused of Misleading US Investors to Raise Funds

Gautam Adani, the head of Adani Group, India's largest logistics and energy conglomerate, has been indicted in the United States on charges of fraud and bribery.

The U.S. Eastern District of New York Prosecutor's Office announced on the 20th (local time) that Adani was charged with conspiracy to commit securities fraud. Six others, including Sagar Adani, Adani's nephew and an executive at the group's renewable energy subsidiary, were also brought to trial.

Reuters Yonhap News

They are accused of bribing Indian officials with approximately $250 million (about 350 billion KRW) to secure contracts for India's largest solar power plant projects. The prosecution explained, "From 2020 over four years, they paid bribes to Indian government officials in exchange for securing business rights that could generate $2 billion in revenue over the next 20 years."

The prosecution also claimed that one of the defendants, Brenit Jain, former CEO of Adani Green Energy, falsified financial statements to raise over $3 billion in loans and bonds from global financial institutions, including U.S. investors.

Under current U.S. law, even if corruption allegations occur abroad, federal prosecutors can investigate if U.S. investors or markets are involved. The Adani Group has attracted investments from around the world while pursuing various infrastructure development projects.

Founded in 1988, Adani Group has rapidly grown into India's largest logistics and energy company in just over 30 years, expanding from infrastructure businesses such as port and airport operations to resource development including coal and gas, and power generation. In early 2022, it signed a comprehensive memorandum of understanding (MOU) with POSCO to jointly develop an eco-friendly integrated steel mill (a steel mill equipped with all three processes: ironmaking, steelmaking, and rolling).

However, during this rapid growth, allegations of collusion with Indian Prime Minister Narendra Modi surfaced, mainly from opposition parties. In January, the U.S. activist investment firm Hindenburg Research also raised suspicions of stock manipulation and accounting fraud. According to Forbes, Adani, aged 62 this year, is estimated to hold assets worth $69.8 billion (about 98 trillion KRW).