Indian billionaire Adani charged in US with bribery; Adani Group shares tumble

Adani Green Energy also cancelled plans on Thursday to raise $600m in US dollar-denominated bonds. The bond had been priced but was pulled after the news.

Adani dollar bonds slumped in Asian trading, with prices down between 3-5c on bonds for Adani Ports and Special Economic Zone. The falls were the largest since the Adani Group came under a short-seller attack in February 2023.

According to an indictment, some conspirators referred privately to Gautam Adani with the code names “Numero uno” and “the big man,” while Sagar Adani allegedly used his cellphone to track specifics about the bribes.

The Adani Group has not responded to requests for comment.

Gautam Adani, Sagar Adani and Jaain were charged with securities fraud, securities fraud conspiracy and wire fraud conspiracy, and the Adanis were also charged in a US Securities and Exchange Commission civil case.

Five other defendants were charged with conspiring to violate the Foreign Corrupt Practices Act, a US anti-bribery law, and four were charged with conspiring to obstruct justice.

None of the defendants is in custody, a spokesperson for US Attorney Breon Peace in Brooklyn said. Gautam Adani is believed to be in India.

Shares in GQG Partners, an Australia-listed investment firm that is a major Adani backer, slid 20%. The decline was the stock’s largest one-day fall since it listed three years ago.

GQG last year bought 3.4% of Adani Enterprises — the group’s flagship firm – 4.1% of Adani Ports and Special Economic Zone, 2.5% of Adani Transmission and 3.5% of Adani Green Energy. It said in a statement that it was monitoring the charges.

Gautam Adani, 62, is worth $69.8bn according to Forbes magazine. He is one of the few billionaires formally accused in the US of criminal wrongdoing.

Reuters

Leave a Reply

Your email address will not be published. Required fields are marked *