Indian billionaire Gautam Adani and his nephew Sagar Adani have been indicted by US prosecutors for their alleged involvement in a $265 million bribery scheme to secure renewable energy projects in India. The allegations include fraud, corruption, and misleading statements to investors. The Adani Group has denied all charges, calling them baseless, while Indian officials remain silent on the matter.
Key Allegations
- Bribery for Renewable Energy Tenders
US prosecutors allege that between 2020 and 2024, Gautam and Sagar Adani, along with other executives from Adani Green and Azure Power, conspired to bribe Indian government officials to secure tenders for renewable energy projects. These projects were awarded by the Solar Energy Corporation of India (SECI), a federal entity responsible for promoting solar energy.
- False Statements to US Investors
The Adani Group allegedly provided misleading anti-bribery statements in their fundraising materials. Between 2021 and 2024, they raised over $3 billion from investors, including $175 million from US investors in a 2021 note offering.
- Tracking and Payment of Bribes
Sagar Adani reportedly used his phone to manage details of bribes, while Gautam Adani allegedly detailed his involvement in the scheme during a 2022 meeting. Azure executives prepared internal documents outlining repayment methods for the bribes, including transferring projects to Adani subsidiaries.
- Project Implications
Bribes were reportedly calculated at approximately $30,000 per megawatt for a 2.3-gigawatt solar project. Payments were concealed under terms like "development fees," with some projects transferred to Adani in lieu of cash payments.
- FBI Investigation
In March 2023, the FBI seized electronic evidence from Sagar Adani and served a search warrant and grand jury subpoena. The investigation revealed potential violations of the Foreign Corrupt Practices Act (FCPA), securities fraud, and wire fraud.
Bribery Laws in the UAE and the World
UAE Laws on Bribery
Bribery is a criminal offense in the UAE, governed by Federal Law No. 3 of 1987 (UAE Penal Code) and Federal Law No. 4 of 2012 on Anti-Money Laundering and Combatting Financing of Terrorism. Key points include:
- Bribery of public officials is punishable by imprisonment and fines.
- Both the giver and receiver of bribes are liable for prosecution.
- Corporate entities may face penalties, including suspension of operations and hefty fines.
- Whistleblower protection is provided for those reporting bribery cases.
Global Anti-Bribery Laws
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Foreign Corrupt Practices Act (FCPA) - USA
Prohibits US entities and individuals from bribing foreign officials to gain business advantages. Violators face criminal charges, asset forfeiture, and imprisonment.
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UK Bribery Act 2010
Extends to bribery offenses committed globally by UK entities and individuals. It includes penalties for failure to prevent bribery within organizations.
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OECD Anti-Bribery Convention
Adopted by 44 countries, it aims to combat bribery of foreign officials in international business transactions. Signatories must implement domestic legislation aligned with the convention.
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UN Convention Against Corruption (UNCAC)
Ratified by 189 countries, UNCAC sets standards for criminalizing bribery, corruption, and money laundering while promoting international cooperation.
Next Steps for Adani Group
The Adani Group has vowed to pursue legal remedies and may negotiate a settlement with US authorities. However, the issuance of an arrest warrant complicates matters, requiring the Indian government’s cooperation to execute the order. If found guilty, executives face severe penalties, including asset forfeiture and prison sentences.
Bribery cases like this underscore the growing global scrutiny of corporate governance and ethical practices, especially in sectors critical to sustainable development.
