SEC’s Brutal Crackdown on Adani Group – How Bribery Charges Could Shatter His Empire

The U.S. Securities and Exchange Commission (SEC) has summoned the chairman of India’s Adani Group for questioning the conglomerate’s financial practices.

Court documents released on Sunday revealed that the SEC has charged Adani, the Indian billionaire, with bribery offenses in the United States and has issued a subpoena for his appearance.

The SEC alleges that Adani received hundreds of millions of dollars in bribes to benefit his company and made false claims about adherence to anti-bribery policies and legal compliance with a $750 million bond issuance. The regulatory body has filed lawsuits against both Adani Group’s chairman and his nephew, Sagar Adani.

Adani is required to respond to the subpoena, which was filed last Wednesday in the U.S. Eastern District Court, within 21 days of its issuance.

The SEC’s lawsuit seeks unspecified monetary penalties and aims to restrict Adani from serving as an executive in any publicly traded company.

Federal Prosecution of Adani Group

In a separate legal development, federal prosecutors have issued arrest warrants for seven individuals, including Gautam and Sagar Adani, for their involvement in a $265 million fraud scheme. The scheme allegedly involved bribes paid to Indian officials to secure power supply contracts.

Authorities claim that seven defendants, including the Adani, conspired to bribe Indian government officials to win contracts projected to generate $2 billion in revenue over two decades and to develop India’s largest solar power project.

Adani Group has strongly denied the allegations, calling them unfounded.

Jugeshinder Singh, the group’s Chief Financial Officer, clarified that the indictment relates to a contract with Adani Green Energy, representing only about 10% of the group’s business. He added, “It’s worth noting that no other major corporation has been accused of any wrongdoing in this matter.”

This crisis marks the second major blow to Adani’s empire. The group has already seen billions wiped off its market value, and the ripple effects were immediately felt when the Kenyan president canceled a significant airport project partnership with Adani Group.