US Steps Into Indian Corruption Case

A federal indictment unsealed November 20th in Brooklyn charges Indian energy magnates Gautam S. Adani, Sagar R. Adani, and Vneet S. Jaain, along with several other individuals, with orchestrating a multi-billion-dollar bribery and fraud scheme.

The case alleges a conspiracy to pay over $250 million in bribes to Indian government officials to secure solar energy contracts, coupled with fraudulent efforts to obtain capital from U.S. and international investors.

The indictment, announced by U.S. Attorney Breon Peace of the Eastern District of New York, Deputy Assistant Attorney General Lisa H. Miller of the Justice Department’s Criminal Division, and FBI Assistant Director in Charge James E. Dennehy, reveals a sprawling scheme involving bribery, securities fraud, and obstruction of justice.

Key Allegations

• Bribery Scheme: Between 2020 and 2024, defendants allegedly promised over $250 million in bribes to Indian government officials to secure solar energy contracts projected to generate $2 billion in profits over 20 years. Gautam S. Adani is accused of personally advancing the scheme through meetings with officials.
• Fraudulent Fundraising: To finance these contracts, the defendants allegedly raised capital from U.S. and international investors using false statements about the company’s anti-bribery practices and financial integrity. Misleading claims were used to secure $2 billion in loans and $1 billion through bond offerings.

  During the alleged scheme, Adani Green conducted a $750 million note offering in September 2021, raising $175 million from U.S. investors. The offering materials included statements about Adani Green’s anti-bribery and compliance measures, which the SEC asserts were materially false or misleading given the Adanis’ actions.

• Obstruction of Justice: Other defendants, including Cyril Cabanes, Saurabh Agarwal, and Deepak Malhotra, allegedly attempted to impede investigations by deleting incriminating evidence, misrepresenting facts during internal probes, and lying to authorities.

Cyril Cabanes, a former director of Azure Power, is accused of facilitating bribes for the project while serving on the board of a U.S.-listed company. Cabanes allegedly authorized payments in furtherance of the bribery scheme while in the United States and abroad.

Jurisdiction?

Adani Green’s note offering and Azure Power’s U.S. stock trading placed these companies under U.S. jurisdiction, highlighting the global reach of U.S. securities laws. Both companies face significant reputational and financial fallout, with penalties likely to impact their operations and investor confidence.

E.D.N.Y. Docket No. 24-CR-433 (NGG).  adani_et_al._indictment.pdf

SEC Complaints:

• SEC Complaint - Gautam Adani and Sagar Adani
• SEC Complaint - Cyril Sebastien Dominique Cabanes