Gautam Adani, the chairman of the Adani Group, a diversified Indian conglomerate, is facing serious legal charges in the United States. Federal prosecutors in New York have filed charges against him and several associates, accusing them of orchestrating a large-scale bribery scheme to secure solar energy contracts in India. The charges, which include wire and securities fraud, stem from allegations that Adani and his colleagues paid over $250 million in bribes to Indian officials to obtain contracts for Adani Green Energy, a renewable energy firm within his group.

Securing Contracts Through Corrupt Practices

According to The New York Times, Adani Green Energy reportedly secured billions of dollars in solar energy deals through illicit means, using corrupt practices to gain lucrative government contracts. Reuters also reported that a substantial sum of $228 million was allegedly promised by Adani to a high-ranking individual in the state of Andhra Pradesh. The indictment suggests that the bribes were tracked via messaging apps and phones, with the individuals involved using code names for both their associates and Adani himself. These deceptive practices were supposedly aimed at securing state and regional contracts for solar energy despite the high costs of the projects, which struggled to attract customers.

Misleading Investors and Concealing Information

The case notably reveals how some key figures within the Adani Group, including Adani’s nephew Sagar Adani, kept detailed records of the bribe offers, tracking the amounts and corresponding power deals. Actions allegedly included misleading investors, particularly during a 2021 bond offering, by falsely claiming strong anti-corruption policies, even as U.S. investigations into the group’s practices began to surface. The SEC has filed a civil suit, claiming that the company raised over $175 million from U.S. investors based on these misleading statements.

The legal proceedings surrounding Gautam Adani come against the backdrop of a business empire that has benefitted from strong political connections, particularly with Indian Prime Minister Narendra Modi, with whom Adani shares a close relationship. Both come from the western state of Gujarat, where Adani was a key supporter of Mr Modi and his ruling Bharatiya Janata party as it rose to dominate national politics. Despite claims of political favouritism, Adani has consistently denied any inappropriate influence on government decisions, including changes in bidding rules to favour his companies. Adani asserted the firm's commitment to developing infrastructure across India and not only in the Bhartiya Janta Party ruled states.

The investigation into the Adani Group is another example of global scrutiny faced by corporations accused of such practices, with previous high-profile cases involving companies like Siemens and Petrobras. The Adani case is significant not only because of the scale of the alleged fraud but also because it underscores the enforcement of the Foreign Corrupt Practices Act (FCPA), a law designed to curb bribery of foreign officials by companies with U.S. ties.

US President Donald Trump recent pause however on the FCPA, which was used to go after the Adani Group under the previous Biden administration, could bring relief to indicted executives in the Adani Group, at least for the next six months while the FCPA is being reviewed.

This risks undermining decades of progress in tackling cross-border corruption and puts international stability at risk. The FCPA pause will work to the advantage of unscrupulous business actors around the world who until now feared U.S. criminal pursuits instead of serving as a stark reminder of the importance of corporate transparency, adherence to anti-corruption laws, and the legal risks companies can face in a globalised economy.