US prosecutors expand probe into Adani Group over bribery allegations: Report

Bloomberg says probe targets founder Gautam Adani amid suspicions of bribery and favoritism in energy projects.

US prosecutors have expanded their investigation of India’s Adani Group to include suspicions of bribery and the actions of the company’s billionaire founder, Bloomberg reported on Saturday.

Sources familiar with the matter revealed that investigators are examining whether an Adani entity, or individuals associated with the company such as Gautam Adani, the group’s founder, may have made payments to Indian officials to secure favorable treatment for an energy project, according to the news agency.

The probe, which also encompasses Indian renewable energy company Azure Power Global Ltd., is being conducted by the US Attorney’s Office for the Eastern District of New York and the Justice Department’s fraud unit in Washington.

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In response to inquiries, the Adani Group stated in an email to Bloomberg that they are unaware of any investigation against their chairman and emphasized their commitment to operating with the highest standards of governance, ensuring compliance with anti-corruption and anti-bribery laws in India and abroad. Both the Justice Department in Brooklyn and Washington declined to comment on the matter, the report said. Azure Power did not respond to requests for comment.

Notably, neither Gautam Adani, his company, nor Azure Power has been charged with any wrongdoing by the Justice Department, and it is important to remember that investigations do not always result in prosecutions.

Aside from its significant presence in India, where it is involved in ports, airports, power lines, and highway developments, the Adani Group also attracts investment from various parts of the world. Under US law, federal prosecutors have the authority to pursue foreign corruption cases if they are connected to American investors or markets.

In January 2023, a US-based research group released a report accusing Gautam Adani, then Asia’s wealthiest individual, of perpetrating fraud over several decades.

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The conglomerate, spanning from Indian ports to power, vehemently refuted the claims made by the short-seller Hindenburg Research, denouncing the report as baseless and malicious.

Stocks of group companies witnessed a staggering meltdown, with their value plummeting by over $100 billion at one point. Adani’s personal wealth also bore the brunt of the fallout, plunging by more than $80 billion within the month following the report’s release.

Taking a short position in Adani’s companies, Hindenburg Research stood to profit from a decline in their stock prices.