Billionaire Gautam Adani, who was linked with the JKIA deal, and one of the world’s richest people, was on Wednesday prosecuted in the United States. This follows the allegations leveled against him over bribery claims linked to a mega-sized solar power plant.
The Official Statement from USA
The US Department of Justice (DOJ), through a statement, alleges that Adani and seven of his associates promised Indian officials more than $250m in bribes to secure energy contracts. The project is being funded partly by the USA and other international investors.
Adani, who is a close ally of India’s Prime Minister Narendra Modi, is being charged alongside his nephew Sagar Adani.
Five other Adani associates linked with the bribery deal– Cyril Cabanes, Saurabh Agarwal, Deepak Malhotra, Rupesh Agarwal, and Ranjit Gupta – have also been charged with related criminal conspiracy and conspiring to obstruct justice.
U.S. law bars foreign companies which raise money from U.S. investors from paying bribes overseas to win business. It is also against U.S. law to raise money from investors based on false statements.
Details of The Indictment
The associates allegedly deleted emails and other electronic material involved in the deal. They also held meetings with US officials in New York, according to the DOJ, but the locations of the meetings were not disclosed yet.
The alleged contracts were expected to produce more than $2bn in profits after tax. This is over a period of about 20 years.
Adani Green Energy also raised more than $3bn in loans and bonds from international investors based on false and misleading.
Effects of The Indictment
Following the indictment, Adani Group companies have reportedly lost about $28bn in market value by Thursday morning.
The group’s shares listed firms have fallen between 10% and 20% on the Indian stock exchanges.
Adani Green Energy also canceled a $600m bond sale.
Opposition parties in India have ganged up calling for Adani’s arrest. Raul Gandhi, leader of the opposition Congress Party, boldly told reporters on Thursday that Prime Minister Modi was bent on “protecting” his ally Adani.
In Kenya, President William Ruto has just canceled the controversial Jomo Kenyatta International Airport project with the group. The procurement process of the deal was expected to hand control of nearly $2 billion.
