Indian billionaire Adani, 3 former executives of Canadian pension fund

Indian billionaire Gautam Adani, one of Asia’s richest men, may be facing his biggest challenge yet with an indictment by U.S. prosecutors for alleged fraud and bribery. But it’s unclear just how the case will affect his businesses and own future — as well as the Indian economy and government.

On Friday, shares in some of the Adani Group’s companies began ticking back up after plunging a day earlier following the announcement of the charges in New York. The stock prices of six of his 10 listed companies rose slightly, between one per cent to nearly four per cent.

Adani, a major power player in India perceived as close to Prime Minister Narendra Modi, was charged Wednesday with securities fraud and conspiracy to commit securities and wire fraud at a court in Brooklyn, N.Y.

The test for the tycoon and his multibillion-dollar empire, which encompasses everything from energy and ports to media and agriculture, comes just after the 62-year-old founder and his holdings had bounced back after losing more than $60 billion in market value in early 2023 following allegations of stock price manipulation and fraud by the short-selling firm Hindenburg Research.

It also raises questions about corporate governance and crony capitalism in India’s economy, which Modi has vowed to make the world’s third-largest, and intensified scrutiny on the outsized influence of large, family-run conglomerates. Asia’s richest man is another Indian billionaire, Mukesh Ambani of Reliance Industries.

Prosecutors allege that Adani duped investors in a massive solar project in India by concealing that it was being facilitated by bribes. Seven other executives connected to Adani’s massive business holdings also face charges, including three former executives from Quebec’s largest pension fund, Caisse de dépôt et placement du Québec (CDPQ).

The indictment outlines an alleged scheme to pay about $265 million in bribes to government officials in India.

Cyril Cabanes, Saurabh Agarwal and Deepak Malhotra, who all held high-ranking positions at CDPQ, are reportedly accused of obstructing a grand jury, the FBI, and the U.S. Securities Exchange Commission. None are Canadian citizens or residents, according to the indictment.

“CDPQ is aware of charges filed in the U.S. against certain former employees,” a spokesperson told CBC News. “Those employees were all terminated in 2023 and CDPQ is co-operating with U.S. authorities. In light of the pending cases, we have no further comment at this time.”

Group denies allegations against green energy arm

The Adani group denied the allegations against directors of Adani Green Energy, its renewable energy arm, as “baseless” and said they will be seeking legal recourse. Shares in Adani’s green energy venture, which is at the centre of the case, dropped eight per cent on Friday.

None of the people charged in the case have been arrested.

“For Adani, this hits hard, no matter how you slice it,” said Michael Kugelman, director of the South Asia…