Gautam Adani cancels Rs 50684100000 bond deal after being charged by US prosecutors in solar energy bribery case

A five-count criminal indictment has been unsealed in the United States District Court for the Eastern District of New York, charging prominent Indian executives including Chairman of the Adani Group Gautam Adani by linking them to an alleged bribery and fraud scheme.

After the US Department of Justice and the US Securities and Exchange Commission made bribery allegations against Gautam Adani and Sagar Adani, the Adani Group reportedly cancelled its $600 million bond offering. 

Adani Group shelved its bond sale after pricing it. In the allegations, the US Department of Justice and the US Securities and Exchange Commission stated that Adani directors bribed Indian officials to secure solar energy contracts.

The US prosecutors charged Gautam Adani and others in an alleged Solar Energy contract bribery case. A five-count criminal indictment has been unsealed in the United States District Court for the Eastern District of New York, charging prominent Indian executives including Chairman of the Adani Group Gautam Adani by linking them to an alleged bribery and fraud scheme.

Adani Green Energy bonds plunged a record 15 cents and the stock was trading at 80 cents on the dollar. The stocks of other companies of Adani group too witnessed a sharp decline. 

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.”

Recently, the Adani Group announced plans to invest $10 billion in US energy and infrastructure. The company aims to strengthen its expansion despite facing market and legal pressures.