The Adani Group, a $143 billion conglomerate spanning ports, energy, and infrastructure, finds itself at the center of a storm after a U.S. indictment accused its leadership of fraud and misleading disclosures. The allegations are reigniting scrutiny of the company’s governance and transparency, particularly following past controversies.
U.S. Investigation Unveils Bribery Allegations
In March 2023, FBI agents approached Sagar Adani, a top finance executive in the Adani Group, with a search warrant, grand jury subpoena, and seized his electronic devices. The evidence gathered has since led to fraud charges against Sagar Adani, Gautam Adani—the group’s chairman—and six others.
The indictment accuses the Adani Group of orchestrating a $265 million bribery scheme to secure power supply contracts in India, while simultaneously misrepresenting their compliance with anti-bribery laws to U.S. investors. Prosecutors claim the group concealed these activities and issued false statements to investors, financial institutions, and regulatory bodies.
Disclosure Lapses Raise Eyebrows
Despite the U.S. investigation, the Adani Group in March 2024 claimed it had not received any notice from the U.S. Department of Justice—a statement prosecutors have labeled as “false.” The indictment also points to “misleading” annual reports from Adani Green, the group’s renewable energy arm, between 2021 and 2024, which purported to reflect adherence to anti-bribery practices.
These revelations come after Hindenburg Research’s 2023 report accused the conglomerate of mismanagement and lack of transparency. While Adani dismissed those claims, asserting its “best-in-class global disclosures,” the latest allegations cast doubt on those assurances.
Indian Regulators Join the Fray
India’s Securities and Exchange Board of India (SEBI) has launched a preliminary inquiry into whether Adani Group’s disclosures violated local market regulations. A SEBI official confirmed the probe but declined to comment further. Proxy advisory firm InGovern Research Services has urged SEBI to issue a show-cause notice to the Adani Group for its alleged lapses.
Shriram Subramanian, founder of InGovern, remarked, “The Adani Group can argue about the materiality of the investigations, but the U.S. indictment suggests a clear deviation from good corporate governance norms.”
Adani Group Denies Allegations
The Adani Group has dismissed the allegations as “baseless” and reiterated its commitment to governance standards. However, the indictment has prompted renewed skepticism among investors and analysts. The group’s failure to disclose the investigation earlier has drawn criticism, with many questioning the adequacy of its transparency practices.