Adani Group stocks rally up to 7% after Gautam Adani's team meets Trump officials over US bribery case
Adani Group stocks surged up to 7% on Monday, May 5, after representatives of billionaire Gautam Adani and his companies reportedly met officials from US President Donald Trump's administration to seek dismissal of criminal charges in a bribery probe, Bloomberg News reported, citing sources.
Following the development, shares of
Adani Enterprises
rose 5.7%, while
Adani Total Gas
surged nearly 7%.
Adani Ports
,
Adani Power
,
Adani Energy Solutions
, and
Adani Green Energy
also gained between 4–5%. Meanwhile,
Ambuja Cements
and
ACC
added up to 2%.
According to Bloomberg, the discussions—which began earlier this year—have gained momentum in recent weeks and could lead to a resolution in the coming month if progress continues. Adani's team is reportedly arguing that the prosecution does not align with Trump administration priorities and should be reconsidered.
In November, US authorities indicted Adani and his nephew, Sagar Adani, alleging that they paid bribes to secure Indian power supply contracts, and misled U.S. investors during fund raises. The SEC summoned Adani and his nephew, alleging they paid millions in bribes to Indian officials while misrepresenting antibribery compliance during a $750 million Adani Green Energy bond offering.
Previously, the US Securities and Exchange Commission (SEC) had requested assistance from India's Ministry of Law and Justice in its investigation of Gautam Adani and his nephew Sagar Adani over alleged securities fraud and a $265 million bribery scheme, reported Reuters citing a court filing.
Last year, federal prosecutors in Brooklyn unsealed an indictment accusing Adani of bribing Indian officials to convince them to buy electricity produced by Adani Green Energy , a subsidiary of his Adani Group conglomerate, and then misleading U.S. investors by providing reassuring information about the company's anti-corruption practices.
Adani Group has called the allegations "baseless" and vowed to seek "all possible legal recourse."
What is the bribery case?
The US Securities and Exchange Commission had in its indictment said that Gautam Adani, Sagar Adani and six others paid $265 million in bribes to Indian state government officials between 2020 and 2024.
The payments were reportedly made to secure lucrative solar power contracts projected to yield $2 billion in profits over 20 years. 'Within 21 days after service of this summons on you (not counting the day you received it)... you must serve on the plaintiff (SEC) an answer to the attached complaint or a motion under Rule 12 of the Federal Rules of Civil Procedure," the notice stated. It also warned, "If you fail to respond, judgment by default will be entered against you for the relief demanded in the complaint,' according to the PTI report.
The SEC claims Adani Green Energy raised $2 billion from American and foreign investors based on false statements.
'Adani Green and the defendants also emphasised to underwriters and potential investors that Adani Green had implemented robust anti-bribery and anticorruption processes and that Adani Green was a leader in India in good corporate governance. None of this was true," the SEC said.
The DoJ alleges the company concealed ongoing bribery allegations while raising funds from American investors, violating the US Securities Act.
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