Gautam Adani faces a $250 million charge related to a bribery scheme involving payments to Indian officials. The billionaire businessman is required to pay this sum to resolve allegations.
New Delhi, Delhi, Nov 20, 2024 – Gautam Adani, the world’s 22nd richest person and India’s second wealthiest, must pay $250 million to settle allegations stemming from energy supply contracts. A New York indictment on Wednesday alleges that the Justice Department has charged Adani and executives from an Indian energy company with securities fraud related to above-market energy purchases. This payment is intended to resolve these charges.
The Securities and Exchange Commission also alleges violations of federal securities laws related to anti-fraud provisions. Prosecutors state that the Adani group engaged in raising capital through misleading statements, resulting in the $250 million penalty. The report indicates that Adani amassed over $750 million during this scheme, with approximately $175 million originating from U.S. investors.
This bribery scheme has raised concerns amongst U.S. investors. Given Adani’s position as the head of one of India’s largest companies, this action is unexpected. Adani’s net worth is $69.8 billion, placing him 22nd on the list of the world’s richest individuals. The Adani Group is also India’s second-largest cement producer (2023 data), generating over $38 billion annually. Their holdings also include major shipping ports and eight airports, serving over 3 million customers. The bribery allegations are therefore surprising, given the scale of the Adani Group’s operations in India.
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Daniel Martin
Source :Daniel Martin