Adani Group founder and chairman, Gautam Adani, alongside seven other executives, has been indicted in the United States on charges of securities fraud, wire fraud, and violations of the Foreign Corrupt Practices Act (FCPA), as reported by Reuters. The charges, announced in Brooklyn federal court, allege that the defendants orchestrated a complex bribery scheme to secure solar energy contracts in India and misled international investors to raise over $3 billion.The five-count criminal indictment was unsealed by the United States District Court for the Eastern District of New York, Reuters reported citing US prosecutors.According to the indictment on the US justice department website, the accused paid more than $250 million in bribes to Indian government officials between 2020 and 2024 to secure lucrative energy contracts projected to generate over $2 billion in post-tax profits across two decades.According to the U.S. Attorney's Office, Eastern District of New York, "A five-count criminal indictment was unsealed in federal court charging Gautam Adani, Sagar R. Adani, and Vneet S. Jaain, with conspiracies to commit securities and wire fraud and substantive securities fraud for their roles in a multi-billion-dollar scheme to obtain funds from U.S. investors and global financial institutions on the basis of false and misleading statements."Also Read: Gautam Adani indicted in US over role in alleged bribery, fraudBribery and Corruption AllegationsThe alleged scheme involved direct engagement by Gautam Adani, who reportedly held personal meetings with Indian officials to advance the bribery plot. Evidence includes electronic communications, detailed spreadsheets, and photographs of documents tracking bribe amounts. Sagar Adani is said to have used his mobile phone to document specifics of the bribes, while Vneet S. Jaain captured a summary of the bribe payments.As reported by PTI, Lisa H. Miller, Deputy Assistant Attorney General, highlighted the case's severity, stating, “This indictment alleges schemes to pay over $250 million in bribes to Indian government officials, to lie to investors and banks to raise billions of dollars, and to obstruct justice. These offenses were allegedly committed by senior executives and directors to obtain and finance massive state energy supply contracts through corruption and fraud at the expense of U.S. investors.”The indictment also charges Ranjit Gupta and Rupesh Agarwal, former executives of a renewable-energy company with securities that had traded on the New York Stock Exchange (the U.S. Issuer), and Cyril Cabanes, Saurabh Agarwal and Deepak Malhotra, former employees of a Canadian institutional investor, with conspiracy to violate the Foreign Corrupt Practices Act in connection with the alleged bribery scheme."As alleged, the defendants orchestrated an elaborate scheme to bribe Indian government officials to secure contracts worth billions of dollars and Gautam S. Adani, Sagar R. Adani and Vneet S. Jaain lied about the bribery scheme as they sought to raise capital from U.S. and international investors," stated United States Attorney Breon Peace as reported by ANI.Also Read: Adani-Hindenburg saga continues: Swiss authorities freeze $310 million across five bank accounts linked to Gautam Adani, says reportWhat are the allegations against Gautam Adani and co-defendants?The case revolves around Adani Green Energy Ltd. and another company’s agreement to sell 12 gigawatts of solar power to the Indian government. According to U.S. prosecutors, Adani and his co-defendants falsified records to secure billions of dollars in investments from Wall Street while simultaneously orchestrating a scheme to pay or plan to pay over $250 million million in bribes to Indian government officials to secure lucrative energy contracts.Key Allegations:Falsifying Records: Adani and his associates are accused of deceiving U.S. investors by providing false information about the company's compliance with anti-bribery laws and internal controls.Bribery Scheme: Prosecutors allege the defendants bribed Indian officials to win state energy supply contracts expected to generate over $2 billion in profits over 20 years.Misrepresentation to Investors: The U.S. Securities and Exchange Commission (SEC) claims that Gautam and Sagar Adani misled investors by falsely asserting that Adani Green Energy maintained a robust anti-bribery compliance program and that its executives had not engaged in or promised to engage in bribery.Fraudulent Fundraising EffortsThe indictment also accuses Gautam Adani, Sagar Adani, and Vneet Jaain of concealing the bribery scheme while raising over $3 billion through loans and bond offerings. These funds were used to finance solar energy contracts allegedly procured through corruption. The defendants allegedly made false claims about the company’s anti-corruption policies and misrepresented financial statements to investors.The US Securities and Exchange Commission (SEC) has filed related civil charges, claiming that Adani Green Energy raised $175 million from US investors by misrepresenting its operations.Also Read: Adani-Hindenburg Saga: A chronology of how a US short-seller sent one of India's biggest conglomerates into turmoilEfforts to Obstruct JusticeFour other defendants—Ranjit Gupta, Rupesh Agarwal, Cyril Cabanes, and Saurabh Agarwal—are charged with obstructing investigations by the SEC, FBI, and US Department of Justice. These individuals allegedly deleted electronic evidence and misled investigators during internal probes.FBI Assistant Director James E. Dennehy stated, “Gautam S. Adani and seven other business executives allegedly bribed the Indian government to finance lucrative contracts designed to benefit their businesses. Adani and other defendants also defrauded investors by raising capital on the basis of false statements about bribery and corruption, while still other defendants allegedly attempted to conceal the bribery conspiracy by obstructing the government’s investigation.”Who are the other accused?The accused include senior executives of Adani Green Energy and Azure Power Global, as well as a former employee of a Canadian institutional investor. Among the defendants are:Gautam S. Adani, 62, Chairman of Adani GroupSagar S. Adani, 30, Adani’s nephewVneet S. Jaain, 53, Executive at Adani Green EnergyRanjit Gupta, 54, Former CEO of Azure Power GlobalRupesh Agarwal, 50, Former Chief Strategy Officer, Azure Power GlobalCyril Cabanes, 50, Former Director, Azure Power GlobalSaurabh Agarwal, 48Deepak Malhotra, 45The indictment comes as Gautam Adani faces heightened scrutiny. In January 2023, Hindenburg Research accused the Adani Group of stock manipulation and accounting fraud. Though Adani denied these allegations, the report triggered a $150 billion loss in the group’s market value.The charges were announced shortly after Adani Green Energy raised $600 million through a green bond sale. Notably, Gautam Adani had recently declared a $10 billion investment plan in US energy infrastructure.Also Read: Adani shares crash up to 20% after Gautam Adani indicted in US on bribery, fraud chargesLegal Proceedings and Future StepsAccording to the Reuters report, arrest warrants have also been issued for Gautam and Sagar Adani, with prosecutors seeking international law enforcement assistance. All defendants are presumed innocent unless proven guilty. Investigations by the DOJ and SEC remain ongoing.This case underscores the global implications of corporate corruption and reinforces US authorities’ commitment to enforcing anti-bribery laws.Also Read: Adani scraps $600 million bond, other notes drop on US chargesHas the indictment had any impact?The indictment has had a significant financial impact on Adani’s conglomerate:Bond Prices Drop: Dollar bonds of several Adani companies fell sharply in early Asian trade following the announcement:Adani Port and Special Economic Zone: Bonds maturing in August 2027 dropped by over five cents on the dollar.Adani Electricity Mumbai: Bonds maturing in February 2030 fell by nearly eight cents.Adani Transmission: Bonds fell by over five cents, trading at just above 80 cents.Largest Decline Since Hindenburg Report: The market reaction marks the largest decline for Adani’s companies since the January 2023 Hindenburg Research report, which accused the group of stock manipulation and accounting fraud, wiping out $150 billion in market value at the time.