Prosecutors claim that the defendants misled US investors and financial institutions, concealing unethical practices to raise over $3 billion through loans and bonds. The US Securities and Exchange Commission (SEC) has filed a civil lawsuit alongside the criminal charges, alleging securities fraud and conspiracy. Adani Green Energy Ltd and executives from Azure Power Global have also been named in the SEC’s suit.
In response, Adani Group stocks plummeted on Thursday, with Adani Energy Solutions experiencing a 20% drop, while Adani Green Energy fell 18%. Other group companies, including Adani Enterprises and Adani Ports, saw declines of over 10%. The developments have shaken investor confidence and cast doubts on the conglomerate’s financial transparency.
US prosecutors have issued arrest warrants for Gautam Adani and Sagar Adani, stating their intention to involve international law enforcement agencies. However, India is expected to contest any extradition requests under its treaty with the US.
This latest controversy reignites scrutiny on the Adani Group, which earlier faced allegations from short-seller Hindenburg Research regarding stock manipulation and accounting fraud. Although the group denied those claims, the new charges have raised fresh concerns about its corporate governance and ethical practices.
The case, likely to take years to resolve, threatens to challenge the conglomerate’s global reputation just as it sought to restore investor confidence.