The U.S. Securities and Exchange Commission (SEC) and Department of Justice (DOJ) charged Gautam Adani and associates with bribery, securities fraud, wire fraud, and misrepresentation. Swiss prosecutors have frozen over $310 million linked to suspected Adani frontmen.
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 despite these red flags, major banks continued to facilitate Adani’s access to global capital markets, arranging billions in bond deals for one of the world’s most controversial conglomerates.
Banks In The Spotlight
Barclays and Standard Chartered, Deutsche Bank, ING, Société Générale and Intesa Sanpaolo have arranged multiple bond deals for the corrupt coal conglomerate, including a crucial $409 million bond for Adani Green Energy in March 2024 – long after Gautam Adani allegedly became aware of the US investigation.
The fact that Adani continued to secure capital via international markets despite allegedly knowing about U.S. investigations since March 2023 raises serious concerns about whether banks:
- Knew about ongoing investigations into Adani when arranging bonds for the company
- Conducted sufficient due diligence into Adani Group to meet financial crime and regulatory obligations
- Met anti-money laundering requirements
As scrutiny of financial crime intensifies, regulators face urgent questions:
- Are global banks upholding due diligence standards, or are they enabling corporate misconduct?
- When it comes to Adani Group, did banks know their client?
With the coal sector facing growing financial and legal risks, regulators must consider whether banks are taking sufficient steps to assess climate and corruption concerns in high-risk industries.
Regulators Must Act
The SEC’s action sets a powerful precedent. As one of the world’s most influential regulators its indictment has sent ripples across financial markets.
Regulators in other countries must now step up to investigate the extent of banks financial involvement with Adani Group and enforce the due diligence standards that maintain the integrity of our financial system.
It’s time to investigate.