“SUDDEN GOOD FORTUNE”
In August of 2021, Gautam Adani had the first of several meetings with an official in the southern state of Andhra Pradesh, to whom he allegedly ultimately promised US$228 million in bribes in exchange for agreeing to have the state buy the power, according to the Justice Department’s indictment.
By December, Andhra Pradesh had agreed to buy the power, and other states with smaller contracts soon followed. Other states’ officials were promised bribes as well, US authorities said.
During a Dec 6, 2021 meeting at a coffee shop, Azure executives allegedly discussed “rumours that the Adanis had somehow facilitated signing” of the deals, according to the SEC.
Gautam Adani said on Dec 14, 2021, the company was on track “to become the world’s largest renewables player by 2030”.
“The sudden good fortune for Azure and Adani Green prompted speculation in the marketplace about the contract awards,” the SEC wrote in its complaint.
LETTER FROM THE SEC
Before long, the SEC began to probe. The agency sent a “general inquiry” letter to Azure – which at the time traded on the New York Stock Exchange – on Mar 17, 2022, asking about its recent contracts and if foreign officials had sought anything of value, according to the Justice Department indictment.
According to the Department of Justice, Gautam Adani told representatives of Azure during a meeting in his Ahmedabad, India office the next month that he expected to be reimbursed more than US$80 million for the bribes he had paid officials that ultimately benefited Azure’s contracts.
Some Azure representatives and a leading investor in the company decided to pay Adani back by allowing his company to take over a potentially profitable project. The representatives and investor allegedly agreed to tell Azure’s board of directors that Adani had requested bribe money, but hid their role in the scheme, prosecutors said.
All the while, Adani’s companies were raising billions of dollars in loans and bonds through international banks, including from US investors. In four separate fundraising transactions between 2021 and 2024, the companies sent investors documents indicating that they had not paid bribes – statements prosecutors say are false and constitute fraud.
FBI SEARCH
During a visit to the United States on Mar 17, 2023, FBI agents seized Sagar Adani’s electronic devices. The agents handed him a search warrant from a judge indicating that the US government was investigating potential violations of fraud statutes and the Foreign Corrupt Practices Act.
According to prosecutors, Gautam Adani emailed himself photographs of each page of the search warrant on Mar 18, 2023.
His companies nonetheless went through with a US$1.36 billion syndicated loan agreement on Dec 5, 2023, and another sale of secured notes in March 2024, and once again furnished investors with misleading information about their anti-bribery practices, according to prosecutors.
On Oct 24, federal prosecutors in Brooklyn secured a secret grand jury indictment against Gautam Adani, Sagar Adani, Gupta, and five others allegedly involved in the scheme.
The indictment was unsealed on Nov 20, prompting a US$27 billion plunge in Adani Group companies’ market value. Adani Green Energy promptly cancelled a scheduled US$600 million bond sale.
