Indian billionaire Gautam Adani, chairman of the Adani Group, has been indicted by U.S. federal prosecutors on charges of securities fraud, wire fraud conspiracy, and bribery. The indictment alleges that between 2020 and 2024, Adani and seven associates, including his nephew Sagar Adani, paid approximately $265 million in bribes to Indian government officials to secure favorable terms for solar energy contracts, aiming to generate over $2 billion in profits.
In response to these allegations, shares of Adani Group companies have experienced significant declines. Adani Enterprises, the conglomerate's flagship firm, saw its stock plummet by 23%, reaching its lowest point since March 2022. Other group companies, including Adani Ports, Adani Total Gas, and Adani Green, faced drops ranging from 20% to 90%.
The U.S. Securities and Exchange Commission (SEC) has also filed a civil case against Adani and his co-defendants for violating antifraud provisions. These developments have led to significant financial repercussions for the Adani corporate empire, with stock prices plunging and calls from Indian opposition leaders for a parliamentary inquiry into Adani's activities.
Additionally, GQG Partners, an investment firm holding nearly a 20% stake in Adani Group, experienced a 23% drop in its Australia-listed shares following the indictment. GQG announced that they are reviewing the situation to decide on appropriate actions for their portfolios.
