US authorities charge one of India's billionaires and founder of Adani Group. Gautam Adani, and several other executives over a bribery scandal that cost hundreds of millions.
It is said that a business tycoon masterminded a multi-million bribery scam over a project for a solar power plant.
US DOJ claims that Adani and his associates promised more than $250 million in bribes to Indian government officials to secure contracts for supplying solar energy, CNN reported. The allegations come a year after the Adani Group was accused of stock manipulation and accounting fraud by a US short-seller, in a Hindenburg Research.
Read More: Wikipedia Faces $237K Defamation Lawsuit in India for Calling Its Newswire a 'Propaganda Tool'
Aftermath of US Indiction to Adani
After being indicted, the company suffered an instant loss of its finances since the company's shares plunged 10% to 20%, thus wiping nearly $30 billion from its market value. The charges also aroused political responses in India as opposition parties called for a parliamentary inquiry over the issue.
The bribery scheme supposedly would yield more than $2 billion in profits on the solar contracts over 20 years. The DOJ further claims that Adani personally met with government officials to discuss advancing the scheme.
According to Reuters, the evidence in the case includes phone records, documents summarizing bribes, and PowerPoint analyses showing the bribery payments. The US authorities have charged Adani and his team with deceiving investors and banks to raise billions of dollars while obstructing justice to finance corrupt deals. The SEC also brought charges showing the financing of over $175 million by Adani Green Energy obtained while misrepresenting the bribery scheme.
In response, the Adani Group strongly denied the charges and has called their evidence as fraud. However, the current litigation involving Adani and the aftermath of the bribery case have sparked skepticism regarding the business practices of the group.
For now, the case is still being investigated, especially it involves not just Adani but also the investors in the US and Indian politics.
Join the Conversation