Sagar Adani, Executive Director of Adani Green Energy and nephew of Gautam Adani, is at the center of a U.S. investigation into a $265 million bribery case.
Search warrant and grand jury subpoena
According to court documents, FBI agents served Sagar Adani with a search warrant and a grand jury subpoena in March 2023. The investigation focuses on alleged violations of the Foreign Corrupt Practices Act (FCPA), securities fraud, and wire fraud.
The search warrant, issued on March 17, authorized the seizure of electronic devices under his control, seeking evidence related to alleged bribes and kickbacks to Indian government officials to secure significant business advantages. A U.S. District Court order indicates that Sagar Adani, Gautam Adani, and others are accused of providing false or misleading information to investors and financial institutions in connection with the alleged bribery scheme.
Who is Sagar Adani?
Sagar Adani joined the Adani Group in 2015 after earning a degree in Economics from Brown University in the United States. Initially working on projects, he played an important role in developing Adani Green Energy’s solar and wind energy portfolio. Currently, he oversees organizational development, strategic planning, and financial management for the company. He is recognized as a key figure in advancing the Adani Group’s renewable energy initiatives and building its identity around an integrated business model.
Sagar Adani association with Adani Group
Born into one of India’s most prominent business families, Sagar Adani has been associated with Adani Green Energy since its inception. His efforts focus on driving the company’s vision, supported by his expertise in macroeconomic trends, innovative processes, and systems.
Gautam Adani, founder of the Adani Group and India’s second-richest individual with a net worth of $69.8 billion as per Forbes, is also implicated in the investigation. This makes him one of the few billionaires formally accused of criminal misconduct in the United States.
The fallout
These allegations have had a substantial impact on the financial markets. Adani Group stocks plunged by up to 25% in a single trading session, resulting in a market value loss of ₹2.6 lakh crore. In response to the fallout, Adani Green Energy canceled a planned U.S. dollar-denominated bond issuance. Shares of GQG Partners, an Australian investment firm heavily invested in Adani Group companies, also declined by 20%, marking its largest single-day drop since its listing. GQG Partners stated that it is closely monitoring the situation.
Read More: Adani Green Decides To Halt USD-Denominated Bond Offerings
