Indian tycoon Adani faces legal storm over alleged bribery, stock manipulation

Gautam Adani, the self-made billionaire behind one of India’s largest and most diversified business empires, is facing a series of legal battles following serious allegations of bribery and stock market manipulation.

These charges have placed his conglomerate, the Adani Group, at the centre of a widening controversy, Caliber.Az reports referring to foreign media.

The group, which spans ports, energy, airports, and media, has been accused of paying bribes amounting to hundreds of millions of dollars to Indian government officials between 2020 and 2024. Adani and his representatives have vehemently denied the allegations, dismissing them as baseless.

The accusations have been formalised in a US indictment, which names Adani and several of his senior executives. According to the indictment, the bribes were allegedly paid in exchange for favourable treatment and government contracts, potentially undermining the integrity of India’s political and economic systems. Despite the severity of these claims, the Adani Group has maintained that all of its operations are fully compliant with Indian laws, and that there is no merit to the charges.

Born in the western Indian state of Gujarat into a modest family, Adani’s rise to immense wealth has been a remarkable one. In the 1980s, he began his career in diamond trading before diversifying into plastics, metals, and textiles. In the 1990s, he took control of a port in Gujarat, a pivotal move that set the foundation for the Adani Group’s future success.

This was followed by an expansion into coal power, making Adani India’s largest private producer of thermal energy. Over the years, the group’s operations expanded into multiple sectors, including airports, cement, edible oils, and media, cementing Adani’s status as one of the wealthiest individuals in India.

A key aspect of Adani’s meteoric rise has been his close relationship with Indian Prime Minister Narendra Modi. The pair forged a partnership during Modi’s tenure as Chief Minister of Gujarat in the early 2000s, with Modi’s pro-business policies benefiting Adani’s ventures. As Modi ascended to the national stage as Prime Minister in 2014, Adani’s empire expanded even further, raising concerns among political opponents and critics.

Some have accused the government of fostering crony capitalism, arguing that Adani’s success is linked to preferential treatment and government contracts.

Journalists investigating the Adani Group’s business practices have also faced harassment and legal pressure, further fueling suspicions of corruption and political patronage. Adani has consistently denied any wrongdoing, asserting that his business operations are entirely lawful.

The scrutiny of the Adani Group intensified in 2023 following a report by the US financial firm Hindenburg, which accused the conglomerate of stock manipulation, excessive debt, and using offshore accounts to manipulate share prices. Though the Adani Group dismissed these allegations as unfounded, further investigations have uncovered evidence suggesting the use of secret offshore funds to buy back its own shares, casting further doubt on the integrity of the group’s financial practices.

As the controversy deepens, the Indian government’s investigative agencies have come under fire for their failure to adequately probe the allegations against Adani. The US indictment has escalated the situation, now implicating the Adani Group in a widespread bribery scheme designed to maintain and expand its dominance in key sectors.

The allegations have sparked political outrage, with opposition leaders calling for urgent action. Rahul Gandhi, leader of the Congress party, has demanded that the government take decisive steps against Adani, questioning why the billionaire remains free despite the mounting evidence against him. “I am wondering why Mr. Adani is still running around a free man in this country?” Gandhi remarked, echoing growing calls for greater accountability.

As investigations continue, the future of the Adani Group remains uncertain. The outcome of these legal proceedings could have significant ramifications not only for Adani’s empire but also for India’s political landscape, with the potential to alter the balance of power in the country’s business and political sectors.

By Aghakazim Guliyev