BENGALURU (Reuters) – Indian billionaire Gautam Adani has been indicted by U.S. prosecutors for his alleged role in a $265 million scheme to bribe Indian officials, sending shockwaves across his eponymous $142 billion ports-to-soybeans business conglomerate.
Here is what you need to know about the U.S. indictment.
THE MAJOR U.S. INDICTMENT
Gautam Adani, one of world’s richest people, faces his biggest challenge after being charged with seven others for alleged bribery related to power supply deals from energy projects in India, with U.S. authorities calling it “The Corrupt Solar Project”.
Adani Group says the allegations are baseless and has vowed to seek “all possible legal recourse”.
There is a growing spotlight on Sagar Adani, a millennial scion of the company who kept track of hundreds of millions of dollars of alleged bribes to Indian officials, in notes the prosecutors described as “bribe notes”.
The alleged bribes caught the attention of U.S. authorities as Adani’s companies were raising funds from U.S.-based investors in several transactions starting 2021.
STOCK ROUT AND FALLOUT
The U.S. indictment has jolted Adani Group debt and equity. Adani Group bonds dropped for a second session after the news. However, stocks in the conglomerates’ companies stabilized on Friday, a day after nearly $27 billion was knocked off from the combined market value of those shares.
In a major blow, Kenya ordered the cancellation of Adani infrastructure deals worth over $2.5 billion. And back in India, opposition parties have demanded a probe into allegations of wrongdoing and said they would raise the issue in parliament.
WHAT NEXT FOR ADANI, LEGAL OPTIONS
A key question is what is next for Gautam Adani? He is charged with foreign bribery, securities fraud, securities fraud conspiracy and wire fraud conspiracy.
Adani has not been arrested and his whereabouts are unknown, though he is believed to be in India.
A trial could still be a long way off, even if Adani is extradited or surrenders in the U.S.
If convicted, Adani could face decades in prison as well as monetary penalties, though any sentence would ultimately be up to the judge overseeing the case.
(Reporting by Munsif Vengattil in Bengaluru; Editing by Aditya Kalra and Sonali Paul)