Indian billionaire Gautam Adani has been accused by American prosecutors of corruption amounting to $265 million, causing one of India's largest conglomerates to plunge into a deep crisis for the second time in two years. Amid the accusations, shares of Adani Group, which owns coal mines, maritime and aviation ports, and is also involved in cement and electricity production, fell by 10-20%. During trading on Thursday, the group lost $28 billion in value.
Numerous fraud charges against Adani, who is one of the richest people in the world, and seven other defendants led to a drop in Adani companies' stocks and bonds on Thursday. According to Reuters, Adani Green Energy, the company at the center of the accusations, also canceled a $600 million bond sale.
Arrest warrants have been issued for Adani and his nephew Sagar Adani, and prosecutors plan to forward these warrants to foreign law enforcement agencies, according to court documents.
American federal prosecutors believe that the defendants agreed to bribe Indian government officials to secure contracts that were expected to generate $2 billion in profits over 20 years and to develop India's largest solar power plant project. They also stated that Adani and another executive of Adani Green Energy, former CEO Vineet Jain, raised more than $3 billion in loans and bonds, concealing their corruption from creditors and investors.
All three were charged with conspiracy to commit securities fraud. Adani was also charged in a civil case by the US Securities and Exchange Commission (SEC).
None of the defendants are in custody, said US Attorney's Office spokesperson Breon Peace in Brooklyn. Gautam Adani is reportedly in India.
"Gautam and Sagar Adani were involved in a bribery scheme during the issuance of Adani Green bonds in September 2021, which raised $750 million, including about $175 million from American investors," the SEC statement said.
The charges followed a significant crisis for Adani Group last year, after short-seller Hindenburg Research published a report accusing the company of improper offshore use, which the company denied.
According to Forbes magazine, Gautam Adani's fortune is $69.8 billion, making him the second richest person in India after Mukesh Ambani. He is one of the few billionaires officially charged with criminal offenses in the United States.