Following the SEC's entry of final judgments by consent in a related lawsuit, the U.S. Justice Department has decided not to further pursue criminal charges against Gautam Adani and Sagar Adani. Adani Group denies the allegations. Investigative bodies have accused the Adani Group of bribery and tax evasion while raising billions through loans and bond offerings.
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Adani, considered one of Asia’s richest individuals, allegedly promised to pay more than $250 million in bribes to Indian officials to secure lucrative contracts. He and his executives further raised money from investors by falsely claiming the company maintained strict anti-corruption policies — all while allegedly continuing the bribery scheme and later attempting to conceal the evidence, prosecutors alleged in 2024.
Despite the severity of the allegations, the Justice Department has requested the case be dismissed "with prejudice," indicating that the charges would be permanently dropped and may not be brought again in the future, according to court records filed Monday. Adani Group has denied the allegations, calling them baseless.
"The Department of Justice has reviewed this case and has decided, in its prosecutorial discretion, not to devote further resources to these criminal charges against individual defendants," prosecutors wrote in a court filing. The decision to drop the charges follows an announcement from the U.S. Securities and Exchange Commission that it moved for entry of final judgments by consent, subject to court approval, in a related lawsuit involving Adani.
The proposed resolution would not require Gautam Adani or Sagar Adani to admit or deny the SEC’s allegations. Beginning in 2020, Adani Green Energy Limited, led by Gautam Adani, secured a major contract to develop solar power projects However, some Indian state governments allegedly declined to purchase the electricity from the project due to high costs.
As a result, Gautam Adani and his nephew, Sagar Adani, allegedly resorted to bribery, including promises of more than $250 million in payments to Indian officials, in order to secure power purchase agreements for theDuring the same period, the company required significant capital to finance the projects and raised approximately $750 million through bond sales to U.S. and global investors. Federal prosecutors alleged that Adani Green and related entities raised more than $3 billion through loans and bond offerings while making false and misleading statements about the company’s anti-bribery and anti-corruption practices.
Prosecutors added that, to attract investors, the company falsely portrayed itself as an industry leader in corporate governance with a strict "zero tolerance" policy on bribery. Indian billionaire Gautam Adani speaks during an interview at his office in the western Indian city of Ahmedabad on April 2, 2014.
When U.S. authorities, including the FBI and the SEC, began investigating the alleged corruption, several executives were accused by prosecutors of attempting to obstruct the inquiry by deleting emails and electronic messages, concealing information during internal investigations, and making false statements to federal agents.
Adani Group Bribery Solar Energy Projects Indian Investors Investors SEC Bribery Scheme Anti-Corruption Policies Corporate Governance Investigation Political Connections Union Departments Legal Proceedings
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