U.S. Fraud Case Against Gautam Adani Hinges on Strong Evidence but Extradition Unlikely Soon

Legal experts believe the U.S. fraud case against Indian billionaire Gautam Adani is built on strong evidence, including electronic documents, but his extradition to stand trial in the United States appears improbable in the near future.

Last month, federal prosecutors in Brooklyn unsealed an indictment accusing Adani of bribing Indian officials to encourage the purchase of electricity from Adani Green Energy, a subsidiary of the Adani Group conglomerate. The indictment also alleges that Adani misled U.S. investors by providing misleading assurances about the company’s anti-corruption practices.

Gautam Adani, his nephew Sagar Adani, and another Adani Group executive face charges of securities fraud and conspiracy. Additionally, five individuals connected to Azure Power Global, a formerly U.S.-listed company allegedly implicated in the scheme, were charged with conspiracy to violate the Foreign Corrupt Practices Act (FCPA). Azure stated that it had cooperated with investigators and that the individuals charged were no longer associated with the company. The Adani Group has dismissed the allegations as “baseless” and expressed its intent to pursue “all possible legal recourse.”

Gautam Adani remains free and has been seen in public in India on at least two occasions since the indictment, including a December 9 event attended by Indian Prime Minister Narendra Modi.

According to the indictment, evidence against Adani includes ledgers of alleged payments discovered on Sagar Adani’s phone, referred to by prosecutors as “bribe notes.” Moreover, prosecutors allege that Gautam Adani emailed himself a copy of an FBI search warrant and grand jury subpoena served on Sagar Adani in March 2023.

These electronic records could serve as key evidence in proving that both Sagar and Gautam Adani were aware of the misconduct. Prosecutors allege the Adani Group misled investors by failing to disclose the investigation and continuing to insist on its adherence to strong anti-corruption measures. Stephen Reynolds, a former federal prosecutor and partner at Day Pitney law firm, remarked, “The allegations include references to corroborating material, and that always provides for a stronger case.”

Despite the strong evidence, prosecutors may encounter obstacles. Gautam Adani could argue that he was not directly involved in crafting the company’s statements to investors about its anti-bribery policies, noted Paul Tuchmann, a former federal prosecutor and now a partner at Wiggin & Dana law firm.

Another significant challenge is securing testimony from witnesses in India. Mark Cohen, a former Brooklyn federal prosecutor and partner at Cohen & Gresser, pointed out that obtaining such testimony might require cooperation from the Indian government, which could be hesitant to assist if doing so portrays Indian officials negatively. India’s foreign ministry, in a November 29 statement, stated that it had not received any requests regarding the case from the United States, framing it as a matter between private firms and the U.S. Justice Department.

The U.S. Justice Department has not commented on whether it has sought Gautam Adani’s extradition from India.

In response to the allegations, both Adani Group and Gautam Adani have emphasized in public statements that none of the group’s executives have been charged with violating the FCPA. The conspiracy charges related to the FCPA carry a maximum penalty of five years in prison, while the securities fraud charges could result in up to 20 years behind bars.

Drew Rolle, deputy chief of the business and securities fraud section at the Brooklyn U.S. Attorney’s office, underlined the significance of the case in protecting U.S. capital markets. His office has successfully prosecuted several foreign bribery cases linked to U.S. interests. In August, for instance, Mozambique’s former finance minister was convicted of fraud and money laundering conspiracy charges for embezzling funds meant for economic development projects.

Rolle highlighted the broader implications of cases like Adani’s, stating, “It’s not only a bribery case; it’s an important securities enforcement case. If you’re going to access our capital markets, you’re going to play by the rules.” He added that misleading investors undermines honest companies and damages the integrity of financial systems.

As the case unfolds, its impact on Adani’s business empire and international reputation remains uncertain.