The investigation, spearheaded by the U.S. Attorney's Office for the Eastern District of New York and the Department of Justice (DOJ), has reportedly expanded to include the group’s broader compliance practices. This follows allegations that Adani and associates may have facilitated payments to government officials, with prosecutors looking at contracts involving billions in projected revenue over two decades.
Adani Group denied any wrongdoing, emphasizing its adherence to anti-corruption laws both domestically and internationally. Spokespersons for the DOJ and other parties involved have refrained from public comments on the case, which remains under investigation.
The scrutiny comes in the wake of separate allegations earlier this year from Hindenburg Research, a U.S.-based short seller. The report accused Adani of manipulating stock prices and engaging in accounting fraud, claims that sent the group’s shares plummeting temporarily. While Adani dismissed the accusations as baseless, the fallout prompted U.S. regulators, including the DOJ and the Securities and Exchange Commission, to initiate probes into the group’s financial practices.
The Foreign Corrupt Practices Act (FCPA) forms the legal basis for the current investigation. The act prohibits companies or individuals with ties to the United States from offering bribes to foreign officials to secure business advantages. Adani Group’s significant dealings with American investors and the presence of U.S.-listed entities in its ecosystem could expose it to these statutes.
Investigators are also exploring the involvement of Azure Power, a competing renewable energy firm, which secured government contracts under similar programs. Both companies operate in India’s rapidly growing green energy sector, benefiting from state-backed initiatives to bolster solar power generation.
Despite its denial of any links to the alleged bribery scheme, the Adani Group is grappling with intensified scrutiny of its financial and operational integrity. This marks yet another challenge for Gautam Adani, whose business empire spans infrastructure, logistics, and energy.