Adani Group revives US investment plans despite $265 million bribery case: Report

According to a Financial Times report, the Gautam Adani-led group is exploring mega infra projects, including utilities, nuclear projects and a port on the East Coast.

After Donald Trump’s win, Adani had announced a $10 billion investment, which was expected to generate 15,000 jobs, but it was pushed to the back burner after the US court indicted Gautam Adani and others for bribing Indian officials for a solar power project.

The Adani Group has dismissed the allegations as "baseless," stating, “We are a law-abiding organisation, fully compliant with all laws." A company spokesperson noted that the indictment stems from the charges, emphasising that the defendants are presumed innocent until proven guilty.

The report said, citing sources, that the Adani Group is clear about its investment plans in the US but would wait until the legal issues are resolved.

"With Trump's arrival, we have reactivated some plans," one insider reportedly said, though they admitted that Adani could still be facing an "indefinite" legal battle.

Another associate said, "We are clear about our intentions, but we will hold off until this matter is resolved."

Currently, Adani Group’s presence in the United States in not significant. Previous attempts for expansion did not work as talks with American companies about petrochemical projects in Texas could not produce impressive results.

According to an expert cited by FT, Adani will go ahead with big-ticket investments in the US if the bribery cases are dismissed.

What is the case against Adani?

Adani Group chairman Gautam Adani, along with seven others, has been indicted by U.S. prosecutors for allegedly paying bribes amounting to Rs 2,029 crore ($265 million) to officials in India to secure solar power contracts across four states and one Union Territory.

Among those implicated is Sagar Adani, Gautam Adani's nephew. However, the question arises: why is the U.S. involved in a case involving bribes allegedly paid in India?

The bribes were reportedly paid between 2020 and 2024 to secure solar power contracts with state electricity distribution companies in Andhra Pradesh, Chhattisgarh, Odisha, Tamil Nadu, and Jammu and Kashmir.

The majority of these payments were allegedly directed at officials in Andhra Pradesh.

What are the accusations?

According to the U.S. indictment, Gautam Adani is identified as the founder and chairperson of an "Indian Energy Company," while Sagar Adani is listed as its executive director. The company, Adani Green Energy, allegedly collaborated with a "U.S. Issuer" to secure contracts for supplying 12 gigawatts of solar power to the state-owned Solar Energy Corporation of India (SECI).

The indictment claims SECI struggled to find buyers for this solar power, jeopardizing the deal. Allegedly, Adani Group and Azure Power, where two U.S.-linked individuals, Ranjit Gupta and Rupesh Agarwal, were employed, offered bribes to government officials to convince state distribution companies to purchase the power from SECI.

Legal action

U.S. prosecutors have issued arrest warrants for Gautam Adani and Sagar Adani, which may be handed over to foreign law enforcement agencies. Meanwhile, the Adani Group has denied the allegations, calling them baseless, and has announced plans to pursue legal action.

Why is the US involved?

According to an India Today report, the case has drawn the attention of U.S. federal authorities due to several factors:

Connection to U.S. Entities: Azure Power, linked to the accused individuals Gupta and Agarwal, is listed on the New York Stock Exchange (NYSE).

Alleged Misrepresentation to U.S. Investors: The indictment alleges that Adani Green Energy, in collaboration with the "U.S. Issuer," concealed critical information from U.S. banks and investors while raising billions for the solar energy project.

Violation of the FCPA: The Foreign Corrupt Practices Act (FCPA) prohibits bribing foreign officials to gain business advantages. One of Adani’s associates is charged with conspiracy to violate this law.

According to the indictment, Adani Green Energy raised $175 million from U.S. investors through a 2021 bond offering, allegedly making false claims about its anti-corruption practices.

The U.S. Securities and Exchange Commission (SEC) has also filed a parallel civil case on similar grounds.

The FCPA and its relevance

The FCPA, established in 1977 to curb corporate corruption, makes it illegal for companies operating in the U.S. to offer bribes to foreign officials. Though the alleged bribery occurred in India, U.S. authorities are investigating because the case involves American entities, investors, and the potential violation of U.S. law.

Joint criminal, civil trial against Adani ordered

A New York court has ordered the consolidation of three ongoing cases against industrialist Gautam Adani and others related to a USD 265 million bribery charge, according to an India Today report.

The court ruled that the cases will be heard together in a joint trial.

The order in this regard was issued on December 12, 2024, by the Eastern District New York Court. The details were made public only in the first week of January.

The decision was based on the court's observation that the cases arise from similar allegations and transactions.

The cases being merged include US vs Adani and others (the criminal case against Adani), Securities and Exchange Commission (SEC) vs Adani and others (the civil case against Adani), and SEC vs Cabanes (the civil case against another accused).

The court stated that the move aims to enhance judicial efficiency and prevent scheduling conflicts.

All the cases will now be assigned to District Judge Nicholas G. Garaufis, who is already presiding over the criminal case against Adani. Court staff have been directed to facilitate the reassignment.