U.S. Indictment Accuses Billionaire Gautam Adani of Corruption, Highlighting Concerns Over Political Influence and Corporate Power in India
THE U.S. GOVERNMENT has brought bribery charges against Gautam Adani, one of India’s wealthiest and most influential businessmen, accusing him and his associates of offering $265 million in bribes to Indian officials. The charges also allege that they misled investors during the fundraising for a major renewable energy project.
These accusations not only challenge the integrity of Adani’s vast business empire but also underscore a growing concern about the close-knit relationship between big business and the Indian government under Prime Minister Narendra Modi.
Adani, the chairman of the Adani Group, has seen his fortune swell alongside Modi’s political rise. Over the past decade, his conglomerate, which spans ports, airports, power plants, and even a news channel, has become a cornerstone of India’s economic landscape.
“Mr. Adani’s business empire has become central to India during the rise of Narendra Modi, first elected as prime minister in 2014,” noted Alex Travelli of The New York Times.
Adani’s growth story is closely tied to Modi’s vision for India. As Modi’s government brought India to the world stage, Adani’s businesses have expanded into key sectors.
Today, Adani’s flagship company is worth about 10 times what it was at the start of the COVID-19 pandemic, reflecting the tycoon’s central role in India’s infrastructure push.
Gautam Adani
Yet this meteoric rise has raised concerns about the intersection of political power and business, with critics questioning the extent to which government favors has fueled Adani’s expansion.
The bribery charges are part of a broader set of legal troubles for Adani, which has attracted significant international attention. In 2022, Hindenburg Research, a U.S.-based investment firm, accused Adani Group of stock manipulation and accounting fraud, calling it “the largest con in corporate history.”
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This report sent Adani’s stock prices plummeting, wiping out $150 billion in market value at one point. However, as Travelli points out, “after the dust kicked up by Hindenburg had settled, Adani’s stocks recovered most of what they had lost.” Despite the initial fallout, Adani’s companies regained value, and new investors capitalized on the stock rebound.
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The U.S. indictment, filed by the Department of Justice in the Eastern District of New York, accuses Adani of personally being involved in a complex bribery scheme aimed at Indian officials.
According to the indictment, the tycoon’s associates used “code names” like “Mr. A,” “Numero uno,” and “the big man” to track the payments to state officials. These charges represent a fresh legal challenge for the tycoon, who is now facing both a criminal case and a civil complaint from the U.S. Securities and Exchange Commission. The charges have already had a significant financial impact, with Adani’s stocks losing 20% of their value in a single day, erasing more than $30 billion in market capitalization.
The Adani Group has strongly denied the charges, calling the allegations “baseless.” A spokesperson for the company reaffirmed its commitment to being “a law-abiding organization, fully compliant with all laws.” However, these claims are not new, and scepticism surrounding Adani’s business practices persists. “Doubts about the Adani business are not new,” Travelli writes, referencing previous accusations of stock manipulation and corporate fraud.
Inside India, Adani is known for his political ties, especially his close relationship with Modi. As Travelli explains, “Within India, Mr. Adani’s reputation is of a politically connected businessman who gets things done.” Critics, however, claim that Adani’s power in India is protected by the highest levels of government, including the judiciary and regulatory agencies.
Prashant Bhushan, a lawyer and political activist, has argued that Adani is shielded from scrutiny by both the government and the country’s legal system. “Mr. Adani is being protected by all the investigative agencies, all the regulators — even by the courts,” Bhushan stated. This close relationship between business and politics has led to accusations that Adani’s wealth and influence have been built on preferential treatment.
The political connections of the Adani Group also extend beyond the ruling Bharatiya Janata Party (BJP) and Modi’s inner circle. Adani is known for making deals across India’s political spectrum, securing partnerships with leaders from various parties.
As Travelli highlights, “Adani is so central to India’s politics that he can broker deals between sworn rivals.” For example, Ajit Pawar, a prominent leader in the opposition, recently revealed that a dinner hosted by Adani had played a key role in brokering an alliance with the BJP in Maharashtra. However, Pawar later retracted his statement, suggesting the power of Adani’s political reach in India.
Critics, including opposition leader Rahul Gandhi, have repeatedly called for greater scrutiny of Adani’s practices. Gandhi has accused Prime Minister Modi of being complicit in corruption, alleging that “the prime minister is involved in corruption” and calling for Adani’s arrest. Despite these charges, the media controlled by Adani’s business empire has largely ignored these accusations, further fuelling concerns about the concentration of power in the hands of a few corporate elites.
The broader question raised by these developments is how much influence powerful business figures like Adani exert over India’s governance and foreign policy. As Travelli notes, “Adani has become an interface between India and the rest of the world, not only its capital markets,” with the tycoon playing a key role in facilitating large-scale infrastructure projects not just in India but in neighboring countries as well.
Adani’s companies are involved in major projects across Bangladesh, Sri Lanka, and Nepal, often in conjunction with the Indian government. Additionally, as Modi travels the world, securing foreign investment, Adani’s enterprises frequently follow suit, signing new deals in places like Israel, Kenya, and Indonesia.
Amid the growing scrutiny over the Adani Group’s alleged involvement in bribery and fraud, Kenya has taken significant steps to distance itself from the conglomerate. Following the U.S. bribery charges against Adani executives, Kenyan President William Ruto announced the cancellation of a $700 million power transmission project deal with Adani.
The Kenya government also halted the procurement process for a proposed expansion of Nairobi’s Jomo Kenyatta International Airport, which involved Adani. This move underscores Kenya’s zero-tolerance stance on corruption as the Adani Group faces international legal challenges.
Adani’s global ambitions are clear, as his company recently pledged a $10 billion investment in U.S. projects. Yet his troubles with U.S. regulators may complicate this, especially as the U.S. government pursues a case under the Foreign Corrupt Practices Act, which holds companies accountable for overseas bribery.
As a close ally of Indian Prime Minister Modi, Adani’s legal battles will undoubtedly raise questions about the future of India’s relationship with the U.S. under the leadership of the new administration, especially considering Modi’s friendly rapport with President-elect Donald Trump.
For now, Adani’s legal woes cast a shadow over his empire, with questions about corruption, political influence, and international business practices at the heart of the debate. How this will affect the broader Indian economy and the political landscape remains to be seen, but it is clear that the charges against Adani have put both his personal legacy and India’s reputation on the global stage at risk. 
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