Adani Indicted: Crisis Looms for Indian Billionaire

Indian tycoon Gautam Adani faces U.S. charges for allegedly bribing officials in a $265 million scheme, causing turmoil for his conglomerate. Arrest warrants and securities fraud accusations deepen the crisis, impacting Adani's business and India's political landscape.

Indian billionaire Gautam Adani has been indicted by U.S. prosecutors over his alleged involvement in a $265 million bribery scheme targeting Indian officials. This indictment marks the second significant crisis for Adani's conglomerate in as many years. The charges accuse Adani and seven other defendants of committing multiple counts of fraud, with implications involving a New York-listed firm that affected American investors.

Following a turbulent period last year, precipitated by a report from short-seller Hindenburg Research, Adani's financial holdings have faced severe impacts. The report accused the Adani Group of improper use of offshore tax havens, allegations that were staunchly denied by the company. Nevertheless, the recent U.S. charges have sent shares and bonds of Adani firms tumbling, with Adani Green Energy subsequently canceling a $600 million bond sale.

Arrest warrants have been issued for Gautam Adani and his nephew Sagar, with U.S. authorities seeking to collaborate with foreign law enforcement. The Adani Group has dismissed the allegations as baseless, promising to explore all possible legal avenues. Charges filed include securities fraud, conspiracy, and violations of the Foreign Corrupt Practices Act. Amidst this legal turmoil, the political ramifications extend to accusations against Prime Minister Narendra Modi's administration of favoritism towards Adani.

(With inputs from agencies.)