The U.S. Securities and Exchange Commission (SEC) and Department of Justice (DOJ) have delivered a seismic blow to the Adani Group’s carefully constructed ‘green’ image. On November 20, 2024, Gautam Adani, his nephew Sagar Adani, and other key executives were indicted for orchestrating a $250 million bribery scheme to secure solar energy contracts in India between 2020 and 2024. The The SEC says these contracts, worth billions in profits, were underpinned by fraud, deception, and outright corruption. During this period, Adani reportedly issued over $3 billion on false claims, misleading and lying to investors.
This indictment is a watershed moment – not just for Adani Group, but for the financial institutions that have continued to enable one of the world’s most controversial conglomerates.
Adani Group’s empire has always been built on shaky foundations, but the SEC’s indictment has turned cracks into chasms. This is not just an Indian scandal – it’s a global issue, with far-reaching implications for the financial institutions that have supported Adani despite the mounting evidence of corruption and fraud.
A history of warnings, now vindicated
For years, financial analysts, whistleblowers, and investigative reports have raised alarms about the Adani Group. From allegations of greenwashing to documented market manipulation and regulatory violations, the signs were clear. Yet, many banks and investors ignored the risks, continuing to pour billions into Adani’s bonds, stocks, and loans. The SEC’s indictment reinforces what those warnings have said all along: Adani’s so-called green empire is a façade.
The financial fallout
Adani Group companies lost over $28 billion in market value within hours of the indictment’s announcement. Adani Green Energy, which has been central to the group’s renewable energy claims, cancelled a $600 million bond sale due to a collapse in investor confidence.
The message from the markets is clear: Adani’s bonds are toxic, and this time, the damage won’t be undone. Investors who hold Adani securities are now exposed to significant financial and reputational risks that cannot be swept under the rug.
Regulators must act
The SEC’s action has set a powerful precedent. As one of the world’s most influential regulators, its indictment will send ripples across global financial systems. But this cannot be the end of the story.
Regulators in other countries must now act decisively to investigate how the Adani Group’s behaviour has violated the rules of their markets. Institutions that continue to support Adani risk not only financial losses but also becoming entangled in future regulatory investigations as authorities in Europe, Asia, and beyond take notice.
What this means for financial institutions
For banks and investors, the implications are clear: the risks of continuing any association with Adani— whether through equity, bonds, or services — are simply too great. Walking away is the only viable path forward.
The indictment is not just a call for justice; it’s a call for financial institutions to reassess their responsibilities and risks. Banks and investors must act decisively or risk their portfolios and reputations.
The SEC has drawn the line. Now, it’s up to global regulators and the financial institutions involved to ensure that this toxic empire is no longer supported.