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Adani billionaires agree $18m penalty with US regulator
Indian billionaire Gautam Adani and his nephew Sagar Adani have reached a tentative $18 million settlement with the US Securities and Exchange Commission to resolve a civil fraud lawsuit, the regulator announced on Friday.
Allegations and market reaction
The SEC accused the Adanis in 2024 of bribing Indian officials to secure renewable energy contracts and misleading American investors about the group's anti-bribery compliance while raising funds through a bond sale. Shares of Adani Group companies climbed on Friday after the proposed deal was disclosed.
Terms of the settlement
The agreement, which still requires court approval, does not require the Adanis to admit or deny the allegations. It does, however, permanently bar them from violating US securities laws that prohibit investor deception, fraud, and market manipulation.
The SEC's lawsuit alleged the Adanis raised $750 million-including $175 million from US investors-while falsely representing that Adani Green Energy complied with anti-bribery regulations. The Adani Group has consistently called the accusations "baseless."
Broader legal context
Separately, media reports on Thursday indicated the US Department of Justice is preparing to drop criminal fraud charges against Gautam Adani. The reversal follows the hiring of a high-profile legal team led by Robert J. Giuffra Jr., a prominent attorney who previously represented former President Donald Trump.
According to The New York Times, Giuffra met with Justice Department officials last month to present concerns about the case. Sources told the newspaper that Adani's legal team also reiterated a pledge to invest $10 billion in the US and create 15,000 jobs-a commitment Adani reportedly made to Trump after the 2024 election.
The reported decision to dismiss the charges reflects what sources described as a broader shift under the Trump administration away from prosecuting foreign bribery cases.
Adani's profile and next steps
Gautam Adani, 63, ranks among the world's wealthiest individuals, with a net worth of $82 billion, according to Forbes. The Adani Group, one of India's largest conglomerates, operates in sectors including energy, infrastructure, and airports.
The BBC has sought comment from both the US Department of Justice and the Adani Group but has not yet received a response.
