Documents from the U.S. Department of Justice reveal a complex web of corruption allegedly involving Gautam Adani and executives from his company, Adani Green Energy, alongside Azure Power. At the heart of the allegations: a $250 million bribery scheme to secure lucrative solar energy contracts. Defendants allegedly used code names while bribes were meticulously tracked through a “corrupt payment analysis.”
Two unnamed individuals pivotal to the scheme have come under scrutiny. Co-Conspirator 1 is a UK citizen residing in Hong Kong, while Co-conspirator 2 has been identified as a high-ranking Indian executive. Both individuals allegedly played key roles in suppressing evidence and withholding critical information from authorities.
The Role of Co-Conspirator 1: A British Connection
Co-Conspirator 1, a United Kingdom citizen residing in Hong Kong, served as the Non-Executive Chairman of the U.S. Issuer and its subsidiary’s boards between October 2021 and October 2023. Identified as a director and agent under the Foreign Corrupt Practices Act (FCPA), Co-Conspirator 1 allegedly joined the bribery scheme to secure power purchase agreements (PPAs) under the Manufacturing Linked Project in India. His role involved collaborating with other defendants, including Adani Group executives, to authorize bribe payments and obstruct investigations by U.S. authorities, such as the FBI and SEC.
Co-Conspirator 2: A High-Ranking Indian Executive
Co-Conspirator 2, an Indian citizen and high-ranking executive at the U.S. Issuer and its subsidiary, held positions from July 2019 to April 2022. Acting within the scope of his employment, he conspired with others, including Gautam Adani and Vneet S. Jaain, to devise and execute the bribery scheme. Co-Conspirator 2 directly agreed to fund portions of the bribes, which were promised to Indian government officials in exchange for securing lucrative PSAs through the Solar Energy Corporation of India (SECI). His resignation in April 2022 marked the end of his formal association with the U.S. Issuer.
Together, Co-Conspirators 1 and 2 worked closely with key Adani Group figures and other defendants to carry out the bribery scheme. Their activities included offering approximately $265 million in bribes to government officials to ensure state electricity distribution companies signed PSAs with SECI. This collaboration was central to the conspiracy, allowing Adani’s subsidiaries and the U.S. Issuer to gain substantial benefits from the Manufacturing Linked Project. Despite attempts to conceal their actions, evidence of their coordination through messaging applications and meetings has emerged, implicating them in the larger corruption case.
Was a whistleblower involved?
The investigation reportedly traces back to whistleblower complaints lodged with Azure’s audit committee in May and September 2022. These reports alleged improper payments to Indian government officials, setting off a chain of events that led to a full-scale U.S. probe. While Azure denied wrongdoing, the complaints triggered scrutiny from both the Justice Department and the SEC.
The indictment has cast a shadow over Adani Group’s operations. The DOJ claims that the company concealed the bribery scheme from global investors, even as Adani Green Energy raised $2 billion from international markets. Despite Adani Group’s denials, the allegations have rattled markets, prompting further investigations and scrutiny of its global business practices.