How Indian billionaire Gautam Adani’s alleged bribery scheme took off and unraveled

How Indian billionaire Gautam Adani’s alleged bribery scheme took off and unraveled
Indian billionaire Gautam Adani speaks during an inauguration ceremony after the Adani Group completed the purchase of Haifa Port in Israel on Jan. 31, 2023.(REUTERS/File Photo)
Short Url
Updated 22 November 2024
Follow

How Indian billionaire Gautam Adani’s alleged bribery scheme took off and unraveled

How Indian billionaire Gautam Adani’s alleged bribery scheme took off and unraveled
  • Gautam Adani allegedly tried to bribe local officials in India to persuade them to buy electricity produced by his renewable energy company Adani Green Energy
  • The allegations caught the attention of US watchdog agencies as Adani’s companies were raising funds from US-based investors in several transactions starting in 2021

NEW YORK: In June of 2020, a renewable energy company owned by Indian billionaire Gautam Adani won what it called the single largest solar development bid ever awarded: an agreement to supply 8 gigawatts of electricity to a state-owned power company.
But there was a problem. Local power companies did not want to pay the prices the state company was offering, jeopardizing the deal, according to US authorities. To save the deal, Adani allegedly decided to bribe local officials to persuade them to buy the electricity.
That allegation is at the heart of US criminal and civil charges unsealed on Wednesday against Adani, who is not currently in US custody and is believed to be in India. His company, Adani Group, said the charges were “baseless” and that it would seek “all possible legal recourse.”
The alleged hundreds of millions of dollars in bribes promised to local Indian officials caught the attention of the US Justice Department and Securities and Exchange Commission as Adani’s companies were raising funds from US-based investors in several transactions starting in 2021.
This account of how the alleged scheme unfolded is drawn from federal prosecutors’ 54-page criminal indictment of Adani and seven of his associates and two parallel civil SEC complaints, which extensively cite electronic messages between the scheme’s alleged participants.
In early 2020, the Solar Energy Corporation of India awarded Adani Green Energy and another company, Azure Power Global, contracts for a 12-gigawatt solar energy project, expected to yield billions of dollars in revenue for both companies, according to the indictment.
It was a major step forward for Adani Green Energy, run by Adani’s nephew, Sagar Adani. Up until that point, the company had only earned roughly $50 million in its history and had yet to turn a profit, according to the SEC complaint.




The logo of the Adani Group is seen on the facade of its Corporate House on the outskirts of Ahmedabad, India, on November 21, 2024. (REUTERS)

But the initiative soon hit roadblocks. Local state electricity distributors were reluctant to commit to buying the new solar power, expecting prices to fall in the future, according to an April 7, 2021 report by the Institute for Energy Economics and Financial Analysis, a think tank.
Sagar Adani and the Azure CEO at the time discussed the delays and hinted at bribes on the encrypted messaging application WhatsApp, according to the SEC.
When the Azure CEO wrote on Nov. 24, 2020, that the local power companies “are being motivated,” Sagar Adani allegedly replied, “Yup ... but the optics are very difficult to cover. In February 2021, Sagar Adani allegedly wrote to the CEO, “Just so you know, we have doubled the incentives to push for these acceptances.”
The SEC did not name the Azure CEO as a defendant, but Azure’s securities filings show the CEO at the time was Ranjit Gupta.
Gupta was charged by the Justice Department with conspiracy to violate an anti-bribery law. He did not immediately respond to a request for comment.
Azure said on Thursday it was cooperating with the US investigations, and that the individuals involved with the accusations had left the company more than a year ago.

‘Sudden good fortune’
In August of 2021, Gautam Adani had the first of several meetings with an official in the southern state of Andhra Pradesh, to whom he allegedly ultimately promised $228 million in bribes in exchange for agreeing to have the state buy the power, according to the Justice Department’s indictment.
By December, Andhra Pradesh had agreed to buy the power, and other states with smaller contracts soon followed. Other states’ officials were promised bribes as well, US authorities said.
During a Dec. 6, 2021 meeting at a coffee shop, Azure executives allegedly discussed “rumors that the Adanis had somehow facilitated signing” of the deals, according to the SEC.
Gautam Adani said on Dec. 14, 2021, the company was on track “to become the world’s largest renewables player by 2030.”
“The sudden good fortune for Azure and Adani Green prompted speculation in the marketplace about the contract awards,” the SEC wrote in its complaint.

Letter from the SEC
Before long, the SEC began to probe. The agency sent a “general inquiry” letter to Azure — which at the time traded on the New York Stock Exchange — on March 17, 2022, asking about its recent contracts and if foreign officials had sought anything of value, according to the Justice Department indictment.
According to the Department of Justice, Gautam Adani told representatives of Azure during a meeting in his Ahmedabad, India office the next month that he expected to be reimbursed more than $80 million for the bribes he had paid officials that ultimately benefited Azure’s contracts.
Some Azure representatives and a leading investor in the company decided to pay Adani back by allowing his company to take over a potentially profitable project. The representatives and investor allegedly agreed to tell Azure’s board of directors that Adani had requested bribe money, but hid their role in the scheme, prosecutors said.
All the while, Adani’s companies were raising billions of dollars in loans and bonds through international banks, including from US investors. In four separate fundraising transactions between 2021 and 2024, the companies sent investors documents indicating that they had not paid bribes — statements prosecutors say are false and constitute fraud.

FBI search
During a visit to the United States on March 17, 2023, FBI agents seized Sagar Adani’s electronic devices. The agents handed him a search warrant from a judge indicating that the US government was investigating potential violations of fraud statutes and the Foreign Corrupt Practices Act.
According to prosecutors, Gautam Adani emailed himself photographs of each page of the search warrant on March 18, 2023.
His companies nonetheless went through with a $1.36 billion syndicated loan agreement on Dec. 5, 2023, and another sale of secured notes in March 2024, and once again furnished investors with misleading information about their anti-bribery practices, according to prosecutors.
On Oct. 24, federal prosecutors in Brooklyn secured a secret grand jury indictment against Gautam Adani, Sagar Adani, Gupta, and five others allegedly involved in the scheme.
The indictment was unsealed on Nov. 20, prompting a $27 billion plunge in Adani Group companies’ market value. Adani Green Energy promptly canceled a scheduled $600 million bond sale.
 


Trump says newly created US sovereign wealth fund could buy TikTok

Trump says newly created US sovereign wealth fund could buy TikTok
Updated 19 sec ago
Follow

Trump says newly created US sovereign wealth fund could buy TikTok

Trump says newly created US sovereign wealth fund could buy TikTok
WASHINGTON: US President Donald Trump signed an executive order on Monday ordering the US Treasury and Commerce Departments to create a sovereign wealth fund and said it may purchase TikTok.
TikTok, which has about 170 million American users, was briefly taken offline just before a law requiring its Chinese owner ByteDance to either sell it on national security grounds or face a ban took effect on Jan. 19.
Trump, after taking office on Jan. 20, signed an executive order seeking to delay by 75 days the enforcement of the law.
Trump has said that he was in talks with multiple people over TikTok’s purchase and would likely have a decision on the popular app’s future in February.

What is USAID? Why President Donald Trump and Elon Musk want to end it?

What is USAID? Why President Donald Trump and Elon Musk want to end it?
Updated 13 min 28 sec ago
Follow

What is USAID? Why President Donald Trump and Elon Musk want to end it?

What is USAID? Why President Donald Trump and Elon Musk want to end it?
  • Since its establishment in 1961, Republicans and Democrats have fought over the USAID and its funding.
  • Its first mission was to counter Soviet influence abroad through foreign assistance

WASHINGTON: Dozens of senior officials put on leave. Thousands of contractors laid off. A freeze put on billions of dollars in humanitarian assistance to other countries.
Over the last two weeks, President Donald Trump’s administration has made significant changes to the US agency charged with delivering humanitarian assistance overseas that has left aid organizations agonizing over whether they can continue with programs such as nutritional assistance for malnourished infants and children.
Then-President John F. Kennedy established the US Agency for International Development, known as USAID, during the Cold War. In the decades since, Republicans and Democrats have fought over the agency and its funding.
Here’s a look at USAID, its history and the changes made since Trump took office.
What is USAID?
Kennedy created USAID at the height of the United States’ Cold War struggle with the Soviet Union. He wanted a more efficient way to counter Soviet influence abroad through foreign assistance and saw the State Department as frustratingly bureaucratic at doing that.
Congress passed the Foreign Assistance Act and Kennedy set up USAID as an independent agency in 1961.
USAID has outlived the Soviet Union, which fell in 1991. Today, supporters of USAID argue that US assistance in countries counters Russian and Chinese influence. China has its own “belt and road” foreign aid program worldwide operating in many countries that the US also wants as partners.
Critics say the programs are wasteful and promote a liberal agenda.
What’s going on with USAID?
On his first day in office Jan. 20, Trump implemented a 90-day freeze on foreign assistance. Four days later, Peter Marocco — a returning political appointee from Trump’s first term — drafted a tougher than expected interpretation of that order, a move that shut down thousands of programs around the world and forced furloughs and layoffs.
Secretary of State Marco Rubio has since moved to keep more kinds of strictly life-saving emergency programs going during the freeze. But confusion over what programs are exempted from the Trump administration’s stop-work orders — and fear of losing US aid permanently — is still freezing aid and development work globally.
Dozens of senior officials have been put on leave, thousands of contractors laid off, and employees were told Monday not to enter its Washington headquarters. And USAID’s website and its account on the X platform have been taken down.
It’s part of a Trump administration crackdown hitting the federal government and its programs. But USAID and foreign aid are among those hit the hardest.
Rubio said the administration’s aim was a program-by-program review of which projects make “America safer, stronger or more prosperous.”
The decision to shut down US-funded programs during the 90-day review meant the US was “getting a lot more cooperation” from recipients of humanitarian, development and security assistance, Rubio said.

US billionaire Elon Musk arrives for the inauguration ceremony before Donald Trump is sworn in as the 47th US President, Jan. 20 (AFP)

What do critics of USAID say?
Republicans typically push to give the State Department — which provides overall foreign policy guidance to USAID — more control of its policy and funds. Democrats typically promote USAID autonomy and authority.
Funding for United Nations agencies, including peacekeeping, human rights and refugee agencies, have been traditional targets for Republican administrations to cut. The first Trump administration moved to reduce foreign aid spending, suspending payments to various UN agencies, including the UN Population Fund and funding to the Palestinian Authority.
In Trump’s first term, the US withdrew from the UN Human Rights Council and its financial obligations to that body. The US is also barred from funding the UN agency for Palestinian refugees, or UNRWA, under a bill signed by then-President Joe Biden last March.
Why is Elon Musk going after USAID?
Musk’s Department of Government Efficiency, known as DOGE, has launched a sweeping effort empowered by Trump to fire government workers and cut trillions in government spending. USAID is one of his prime targets. Musk alleges USAID funding has been used to launch deadly programs and called it a “criminal organization.”
What is being affected by the USAID freeze?
Sub-Saharan Africa could suffer more than any other region during the aid pause. The US gave the region more than $6.5 billion in humanitarian assistance last year. HIV patients in Africa arriving at clinics funded by an acclaimed US program that helped rein in the global AIDS epidemic of the 1980s found locked doors.
There are also already ramifications in Latin America. In southern Mexico, a busy shelter for migrants has been left without a doctor. A program to provide mental health support for LGBTQ+ youth fleeing Venezuela was disbanded.
In Colombia, Costa Rica, Ecuador, and Guatemala, so-called “Safe Mobility Offices” where migrants can legally apply to enter the US have been shuttered.
The aid community is struggling to get the full picture— how many thousands of programs have shut down, and how many thousands of workers were furloughed and laid off under the freeze?
How much does the US spend on foreign aid?
In all, the US spent about roughly $40 billion in foreign aid in the 2023 fiscal year, according to a report published last month by the nonpartisan Congressional Research Service.
The US is the largest provider of humanitarian assistance globally, although some other countries spend a bigger share of their budget on it. Foreign assistance overall amounts to less than 1 percent of the US budget.
Could Trump dissolve USAID on his own?
Democrats say presidents lack the constitutional authority to eliminate USAID. But it’s not clear what would stop him from trying.
A mini-version of that legal battle played out in Trump’s first term when he tried to cut the budget for foreign operations by a third.
When Congress refused, the Trump administration used freezes and other tactics to cut the flow of funds already appropriated by Congress for foreign programs. The General Accounting Office later ruled that it violated a law known as the Impoundment Control Act.
It’s a law we may be hearing more of.
“Live by executive order, die by executive order,” Musk said on X Saturday in reference to USAID.


Indonesia’s Bali moves to ban plastic bottles

Indonesia’s Bali moves to ban plastic bottles
Updated 03 February 2025
Follow

Indonesia’s Bali moves to ban plastic bottles

Indonesia’s Bali moves to ban plastic bottles
  • Bali produces around 300,000 tons of plastic waste every year  
  • It was the first Indonesian province to ban single-use plastics in 2019 

JAKARTA: Indonesia’s Bali began banning plastic bottles on Monday, in a move aimed at tackling plastic pollution in one of the world’s most popular tourist destinations.

The island produces around 300,000 tons of plastic waste annually, more than half of which goes uncollected, including 33,000 tons that gets into Bali’s waterways. 

Under the new policy, plastic bottles will be banned across all government offices and schools in Bali. 

“We hope this policy will be implemented in full responsibility by all relevant parties for a green and sustainable Bali,” Dewa Made Indra, the province’s regional secretary, said in a statement. 

The policy also requires “school principals and teachers to serve as role models for students by using tumblers to reduce or eliminate plastic waste from food and beverage packaging.” 

In recent years, Bali’s plastic waste problem has made international headlines as iconic beaches were littered with trash during the peak of the monsoon season, when heavy winds and rain wash up pollution also from neighboring Java island.

Last month, clips of massive “trash waves” on the shoreline of Jimbaran beach went viral on social media, marking one of the year’s first instances of what has become an annual occurrence around the island. 

The issue is also a concern for the central government, with Indonesia’s Environment Minister Hanif Faisol Nurofiq taking part in Bali’s beach clean-up events twice last month. 

“It is urgent for the sake of environmental sustainability, and also considering that Bali is a barometer for tourism in Indonesia, so we must show that our country is dedicated to find solutions to the plastic waste management problem,” Ratna Hendratmoko, who heads the Natural Resources Conservation Center in Bali, told Arab News. 

Bali, an island known for its scenic natural beauty and rich traditional culture, draws millions of foreign tourists annually. In 2024, it welcomed more than 6.3 million international visitors — which is around half of the total number of such arrivals in Indonesia. 

In 2019, the Bali provincial government banned single-use plastics in an effort to tackle marine pollution, becoming the first Indonesian province to do so.

The latest policy, which mandates government officials to bring their own reusable water bottles, may be the first step to implementing an islandwide ban.  

“Our staff are committed to comply with this new policy,” I Made Rentin, head of the forestry and environment agency in Bali, told Arab News. 

“For now, we will strengthen implementation internally at the government level.”


Cautious optimism in Bangladesh as post-Hasina relations with Pakistan grow

Cautious optimism in Bangladesh as post-Hasina relations with Pakistan grow
Updated 03 February 2025
Follow

Cautious optimism in Bangladesh as post-Hasina relations with Pakistan grow

Cautious optimism in Bangladesh as post-Hasina relations with Pakistan grow
  • Head of Bangladesh interim government has met Pakistani PM twice since taking office on Aug. 8
  • In 2024, Pakistani cargo ships began to arrive at Bangladesh’s main port for the first time in over 50 years

Dhaka: The ouster of Bangladeshi Prime Minister Sheikh Hasina last August has opened a “new horizon of opportunities” for diplomacy with Pakistan, analysts, political parties and members of the public said, as Dhaka and Islamabad move to befriend each other after decades of acrimonious ties.

The head of Bangladesh’s interim government, Nobel laureate Muhammad Yunus, has met with Pakistani Prime Minister Shehbaz Sharif twice since taking office on Aug. 8 after Hasina fled the country following a student-led popular uprising against her government.

Hasina’s government was hostile toward Pakistan but closely allied with India, where she remains exiled. While her removal from office was followed by the cooling of relations between Dhaka and New Delhi, exchanges with Islamabad started to grow.

“The recent developments, in terms of bilateral exchanges with Pakistan, are a process to normalize the relationship. For various reasons, it was below the normal level in the last 15 years. Now, an opportunity has been created to normalize the relationship, which is natural between two states,” Humayun Kabir, former Bangladeshi ambassador to the US, told Arab News.

“I believe India can approach this bilateral relationship normally if they choose to. From India’s perspective, there is no reason to view it negatively. We want the relationship between India and Bangladesh to be considered bilaterally, without being influenced by issues with Pakistan. Similarly, our bilateral relationship with Pakistan will continue independently of any issues with India. I think this approach will create a dynamic in the relationship within the broader context of South Asia.”

Political parties that were in opposition to Hasina’s Awami League party’s government — its archrival the Bangladesh Nationalist Party and the largest Islamist party Bangladesh Jamaat-e-Islami, which was banned during her rule — were both optimistic about growing Pakistan ties.

“During the previous regime, Sheikh Hasina maintained close ties with only one country. In her own words, she said: ‘What Bangladesh has given to India, India will remember forever.’ This foreign policy was not the right approach,” said Matiur Rahman Akand, spokesperson of Jamaat-e-Islami.

Nawshad Zamir, the international affairs secretary of the Bangladesh Nationalist party, also welcomed the fact that the two nations had “resumed normal relationship, like before.”

But the memory of the 1971 war for independence remains alive.

Jamaat-e-Islami was at the time an active political party and during the war was aligned with Pakistan, opposing the independence movement.

On the other hand, the Bangladesh Nationalist Party was founded by Ziaur Rahman, a prominent Bangladesh Forces commander and one of the leading figures of the independence war.

While for both parties the normalization of ties with Islamabad is a welcome development, ordinary Bangladeshis see it with a dose of caution.

“We can establish regional cooperation. And I think this is a chance to become a regional leader … (but) personally, I believe that Pakistan first needs to deal with the 1971 issue,” said Mustafa Musfiq Talukdar, student at Dhaka University.

“In 1974, (Pakistan’s then Prime Minister) Zulfiqar Ali Bhutto came to Bangladesh and he kind of apologized personally, but it wasn’t something formal. So, we demand a formal apology from Pakistan for everything they did in 1971.”

For Tamim Muntaseer, a Dhaka-based researcher, an official apology was also essential for the relationship to move forward.

“We have seen that a new horizon of opportunities with Pakistan has been created. And I think this should be supported in terms of justice,” he said.

“Bangladesh and Pakistan are aligned in terms of their regional economy, trade … We should also consider people-to-people relationships.”

Such exchanges have already been underway over the past few months. Since December, Pakistani artists have been performing in Dhaka, while Bangladeshi films have been screened at cinemas in Pakistan.

Pakistani cargo ships also began to arrive at Bangladesh’s main Chittagong port for the first time since the 1971 war.

“I am quite positive about the current developments between Bangladesh and Pakistan,” Tahmid Al-Mudassir Choudhury, another Dhaka University student, told Arab News.

“I am not saying that we must forgive everything. Still, we can keep a good relationship with Pakistan … We have seen that in cricket: Bangladeshi people supporting the Pakistani cricket team, and the people of Pakistan also supporting the Bangladeshi cricket team. We can celebrate those similarities, and this can bring the people of Bangladesh and Pakistan together.”


UN says shooting incident at Kabul compound killed one

UN says shooting incident at Kabul compound killed one
Updated 03 February 2025
Follow

UN says shooting incident at Kabul compound killed one

UN says shooting incident at Kabul compound killed one
  • UN says gunshots were fired by member of Taliban’s security forces at multilateral agency’s largest compound 
  • Person killed was member of Taliban-run security forces who was outside the compound, unclear what provoked firing

ISLAMABAD: Gunshots fired by a member of the Taliban’s security forces at the United Nations’ largest compound killed one person and injured another in Kabul, the United Nations Assistance Mission in Afghanistan (UNAMA) said in a statement on Monday.

The incident took place on Sunday, it said.

The person killed was a member of the Taliban-run security forces who was outside the compound, the statement said without adding any details. The person injured was an international security guard contracted by the UN, it said.

“UN-contracted security guards did not return fire during the incident,” it said.

It was unclear what provoked the firing. Both the Taliban and the UN were investigating the incident.

Kabul’s interior ministry spokesman Abdul Mateen Qaniee confirmed that a Taliban guard was killed and one UN contractor suffered injuries.

Taliban authorities halted all movement in and out of the compound following the incident, UNAMA said, but those restrictions have now been lifted.

The compound houses the offices of multiple UN agencies, funds and programs, and accommodation for UN international staff members.