Indian billionaire Gautam Adani’s net worth dropped by over USD 10 billion on Thursday, November 21, following the issuance of an arrest warrant in the US by a judge, just hours after federal prosecutors accused him of running a USD 250 million bribery scheme in India. Arrest warrant was also issued against Sagar Adani, nephew of Gautam Adani and the Executive Director of Adani Green Energy Limited.
Gautam Adani and his senior executives and directors are accused of working to obtain “massive” contracts through “corruption and fraud at the expense of US investors”.
As per the indictment, Adani and his executives paid bribes to officials in India between 2020 and 2024 to secure lucrative contracts and make around USD 2 billion in profits over the next two decades. While the Adani Group has trashed the allegations as “baseless”, Adani Group firms — comprising 10 companies — lost USD 34 billion in market value on Thursday.
Meanwhile, clamour for Adani’s arrest grew in India as well. Leader of the Opposition Rahul Gandhi called for Adani’s immediate arrest on Thursday. “It is now pretty clear and established that Adani has broken both Indian law and American law. I am wondering why Adani is running around as a free man in this country. It is a vindication of what we have been saying. The PM is protecting Adani and the PM is involved in corruption with Adani,” Rahul said, as quoted by India Today.
It's now clear that Gautam Adani has broken Indian and American law.
— Venisha G Kiba (@KibaVenisha) November 21, 2024
Why this man is still running free? Chief Ministers were arrested but why Gautam Adani is not?
He should be arrested immediately.
-LoP Rahul Gandhi Ji pic.twitter.com/ER9f5BOrqz
“It is my responsibility as LoP, to raise this issue. This man has acquired India’s assets through corruption. He provides support to the BJP, it is established. JPC is our demand, but we want Adani to be arrested,” Gandhi said.
Breon Peace, United States Attorney for the Eastern District of New York, Lisa H. Miller, Deputy Assistant Attorney General for the Justice Department’s Criminal Division and James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI) announced the charges on Wednesday (local time).
“As alleged, the defendants orchestrated an elaborate scheme to bribe Indian government officials to secure contracts worth billions of dollars and Gautam S. Adani, Sagar R. Adani and Vneet S. Jaain lied about the bribery scheme as they sought to raise capital from U.S. and international investors,” stated United States Attorney Peace. “My Office is committed to rooting out corruption in the international marketplace and protecting investors from those who seek to enrich themselves at the expense of the integrity of our financial markets.”
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“This indictment alleges schemes to pay over USD 250 million in bribes to Indian government officials, to lie to investors and banks to raise billions of dollars, and to obstruct justice,” stated Deputy Assistant Attorney General Miller. “These offenses were allegedly committed by senior executives and directors to obtain and finance massive state energy supply contracts through corruption and fraud at the expense of U.S. investors. The Criminal Division will continue to aggressively prosecute corrupt, deceptive, and obstructive conduct that violates U.S. law, no matter where in the world it occurs.”
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“Gautam S. Adani and seven other business executives allegedly bribed the Indian government to finance lucrative contracts designed to benefit their businesses. Adani and other defendants also defrauded investors by raising capital on the basis of false statements about bribery and corruption, while still other defendants allegedly attempted to conceal the bribery conspiracy by obstructing the government’s investigation,” stated FBI Assistant Director in Charge Dennehy. “The FBI maintains its steadfast mission to expose all corrupt agreements, especially with international governments, and protect investors from related harm.”
(With inputs from PTI.)
