US Bribery Case Against Adani Is Bad News for Modi
The indictment will intensify political attacks on India’s prime minister for his proximity to the tycoon. Trump may use it to drive a hard bargain.
The US bribery case against Gautam Adani will cast a long shadow.
Photographer: Dhiraj Singh/BloombergThe US Justice Department’s criminal charges against Gautam Adani pose the biggest threat yet to the Asian tycoon’s $169 billion empire. More importantly, though, it’s also a missed opportunity for India’s opposition, an unexpected gift to President-elect Donald Trump, and an all-around embarrassment for Prime Minister Narendra Modi.
The 54-page indictment alleges that Adani Green Energy Ltd.’s mega 2020 order from Solar Energy Corporation of India had a problem — there were no takers for the expensive power, which jeopardized the lucrative contract. That, the DOJ says, gave rise to a corrupt scheme “to pay over $250 million in bribes to Indian government officials, to lie to investors and banks to raise billions of dollars, and to obstruct justice.” The case is against group Chairman Gautam Adani, his nephew Sagar, who is executive director of the green-energy business, and six other individuals. The conglomerate denied the allegations as baseless and said it’s fully compliant with all laws. “All possible legal recourse will be sought,” the group said in a statement.