US Authorities Issue Arrest Warrant for Gautam Adani

[ABS News Service/21.11.2024]

Gautam Adani, the Indian billionaire behind Queensland's controversial Carmichael coal mine, has been charged in the US over an alleged multi-billion-dollar fraud scheme.

American authorities accuse the Adani Group chairman, his nephew Sagar Adani, and six associates of plotting to pay bribes to Indian government officials of more than $US265 million ($407 million).

They said this has taken place "at the expense of US investors".

Adani Group said in a statement that the allegations were "baseless and denied", adding that it would seek "all possible legal recourse".

Prosecutors also said the Adanis and another executive at Adani Green Energy, Vneet Jaain, raised several billion dollars in loans and bonds by concealing the corruption from lenders and investors.

According to court documents, some of the defendants referred privately to Gautam Adami with the code names "Numero uno" and "the big man".

Sagar Adani allegedly used his mobile phone to track specifics about the bribes,which aimed to obtain solar energy supply contracts expected to yield $US2 billion ($3 billion) in profits.

According to court records, a judge has issued arrest warrants for Gautam Adani and Sagar Adani, and prosecutors plan to hand those warrants to foreign law enforcement.

Gautam Adani is worth $107 billion, according to Forbes magazine, making him the world's 22nd richest person.

Shares and bonds of Adani firms tumbled on Thursday and Adani Green Energy, the company at the centre of the allegations, also cancelled a $600 million bond sale.

The Adani Group's Australian subsidiary, Bravus, owns Central Queensland's Carmichael coalmine, one of the most contentious mining projects in Australian history.

Since its approval a decade ago, it has generated strong community opposition over impacts on the Great Barrier Reef and groundwater, and its carbon emissions.

Bravus also owns and operates the North Queensland Export Terminal near Bowen, and the Rugby Run solar farm near Moranbah.

Australian businessman among Adani's co-accused

The defendants in the US case also include two executives of another renewable energy company, and three employees of a Canadian institutional investor. They have been charged with conspiring to violate the Foreign Corrupt Practices Act, a US anti-bribery law.

One of them is Australian businessman Cyril Cabanes, who also holds French citizenship and was working for the Canadian investor in Singapore, according to court documents.

Mr Cabanes is the only defendant who is not an Indian citizen living in India, according to the court documents.

According to his LinkedIn profile, Mr Cabanes has previously held leadership and board positions at several infrastructure companies in Australia.

He was principal at C3 infrastructure capital firm in Sydney, and a non-executive chairman at GeelongPort, Infrastructure Investment Corp, and private timber plantation company HVP Plantations.

The Adani Group did not immediately respond to requests for comment outside business hours in India, where the charges were announced early Thursday morning, local time.

India's embassy in Washington did not immediately respond to a request for comment.

"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," Deputy Assistant Attorney General Lisa Miller said in a statement.

"These offences were allegedly committed by senior executives and directors to obtain and finance massive state energy supply contracts through corruption and fraud at the expense of US investors."

The US Securities and Exchange Commission filed related civil charges against Gautam Adani, Sagar Adani and Mr Cabanes.