UPDATE 2 - Indian opposition seeks probe after billionaire Adani charged in US with bribery, fraud

UPDATES WITH STATEMENT BY INDIAN OPPOSITION PARTIES, RULING PARTY MEMBERS, KENYA PRESIDENT; CHANGES HEADLINE, DECK, LEDE

By Ahmad Adil and Servet Gunerigok

NEW DELHI/WASHINGTON (AA) - India's main opposition parties on Thursday demanded a probe into the allegations against billionaire Gautam Adani and seven other executives who were charged by the US with bribery and securities fraud for their roles in a multi-billion-dollar scheme.

Rahul Gandhi, the leader of the Congress party, also demanded the billionaire's arrest in the matter, which alleges that Adani and others sought to obtain funds from US investors and global financial institutions.

“Wherever there is corruption, investigation should be done. But investigation will begin with Adani. Unless he is arrested, it won't be credible. So, begin it from there. Arrest Adani, interrogate him and then nab whoever is involved,” Gandhi told reporters in the Indian capital New Delhi.

According to the US Department of Justice, a five-count criminal indictment was unsealed on Wednesday in federal court in New York charging Gautam Adani, Sagar Adani, and Vneet Jaain, the executives of an Indian renewable-energy company -- the Indian Energy Company.

"When a top-ranking Indian businessman is indicted by a foreign country, it tarnishes our image at the global stage," said Congress party Chief Mallikarjun Kharge.

“With Indian agencies being compromised and acting as wings of the BJP (Bharatiya Janata Party), only an independent judicial probe will expose the truth,” spokesperson of All India Trinamool Congress Saket Gokhale said on X.

While the ruling BJP said "law will take its own course" in the matter, a senior leader of the party questioned the timing of the indictment.

“Don’t get needlessly excited,” Amit Malviya, a member of the BJP wrote in response to a Congress politician's statement on X. “The timing of the report, just before the Parliament session and Donald Trump’s impending Presidency raises several questions.”

The indictment also charged Ranjit Gupta and Rupesh Agarwal, former executives of a renewable-energy company, and Cyril Cabanes, Saurabh Agarwal, and Deepak Malhotra, former employees of a Canadian institutional investor, with conspiracy to violate the Foreign Corrupt Practices Act in connection with a bribery scheme.

Breon Peace, US Attorney for the Eastern District of New York, said "the defendants orchestrated an elaborate scheme to bribe Indian government officials to secure contracts worth billions of dollars."

“This indictment alleges schemes 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,” said Deputy Assistant Attorney General Lisa Miller.

Between 2020 and 2024, Adani and others allegedly concealed the bribery scheme, while obtaining over $3 billion in financing, including US dollar loans and bond offerings.

Prosecutors further allege that Adani's co-defendants, including former executives and institutional investors, obstructed investigations by deleting evidence and withholding information during internal inquiries and federal probes.

The charges include conspiracy to commit securities and wire fraud, Foreign Corrupt Practices Act violations, and obstruction of justice.

Adani's conglomerate is a major player in renewable energy and other sectors. Neither Adani nor his representatives have publicly commented on the charges.

If convicted, the defendants face significant prison time and financial penalties.

- Group denies allegations

Adani’s group, however, has denied the allegations terming them “baseless.”

“The Adani Group has always upheld and is steadfastly committed to maintaining the highest standards of governance, transparency and regulatory compliance across all jurisdictions of its operations,” the spokesperson said in a statement as share prices of Adani Group companies crashed sharply by up to 20% on Thursday.

“We assure our stakeholders, partners and employees that we are a law-abiding organisation, fully compliant with all laws.”

This is the second time Adani group is facing allegations of wrongdoing.

Earlier, US short-seller Hindenburg Research released a report in January 2023 alleging that the Adani Group “has engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades.” The group then also denied the allegations.

The allegations against Adani have cost the group billions of dollars in lost market share.

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- Kenya cancels deals with Adani

Meanwhile, Kenya's President William Ruto Thursday directed the cancellation of two major deals involving the Adani Group, citing the need for transparency and accountability.

The projects, a proposed 30-year lease of Jomo Kenyatta International Airport and a $736 million power transmission deal with Kenya Electricity Transmission Company, were terminated based on information from investigative agencies and partner nations.

* Andrew Wasike contributed to the story from Nairobi.