NEW DELHI — Gautam Adani, the Indian billionaire often viewed as Asia’s richest man, is once again facing scrutiny as his companies’ stock prices took a substantial hit, dropping by as much as 20% on Thursday. This decline follows his indictment by U.S. prosecutors, who accuse him of misleading investors in a major solar energy initiative in India by concealing its alleged associations with bribery.

The indictment, unsealed by federal prosecutors in New York on Wednesday, charges the 62-year-old with securities fraud and conspiracy to commit securities and wire fraud. Following this legal action in the United States, Adani group’s decision to halt a proposed bond offering denominated in U.S. dollars was announced. Adani Renewables released this information through letters addressed to the Bombay Stock Exchange and the National Stock Exchange of India.

### Who is Gautam Adani?

Originating from a middle-class family in Ahmedabad, located in the western Indian state of Gujarat, Adani left college to pursue a career as a diamond trader in Mumbai, India’s bustling financial hub. In the 1980s, he ventured into importing plastics, eventually founding Adani Enterprises. This flagship company, which began trading a diverse range of products from footwear to buckets, laid the foundation for his future success.

With India’s economic liberalization in the 1990s, a burgeoning middle class emerged, unlocking significant growth opportunities for Adani, who wisely invested in infrastructure and coal. His flagship endeavor, the Mundra port in Gujarat, was inaugurated in 1998 and now stands as India’s largest port. Adani Ports and Special Economic Zone Ltd. is recognized as the biggest private port operator in India, and in less than ten years, Adani rose to prominence as the country’s foremost developer and operator of coal mines, with operations extending to Australia and Indonesia, as noted on Adani Power’s website.

The Adani conglomerate, now India’s second-largest, spans a diverse array of operations, including airport management in major cities, road construction, electricity generation, defense manufacturing, agricultural drone development, cooking oil sales, and media operations. Interestingly, despite his deep ties to fossil fuels, Adani Green has set its sights on becoming the world leader in renewable energy by 2030.

### Why is Adani Controversial?

Adani’s close association with the Hindu nationalist government has ignited controversy, as opposition parties accuse Prime Minister Narendra Modi of having a cozy relationship with the tycoon, both of whom are natives of Gujarat. Critics argue that many of Adani’s accomplishments are due to this connection, claiming that the government has manipulated bidding processes to advantage Adani in contract awards, particularly concerning airport operations. In response, his company has asserted that the bidding process was conducted with transparency.

Following the recent indictment, India’s main opposition party called for a parliamentary investigation into the dealings of the Adani Group. Jairam Ramesh, a senior figure in the Congress Party, condemned the situation as leading to “growing monopolization in key sectors of the Indian economy,” raising inflation concerns and foreign policy complications. He emphasized that his party has repeatedly highlighted various aspects of these scams and the close ties between the Prime Minister and Adani, which remain largely unanswered.

Last year, Adani’s businesses suffered a staggering loss, with a market value decrease of $68 billion after short-seller Hindenburg Research accused the conglomerate of executing “the largest con in corporate history,” prompting widespread sell-offs of its stock. Hindenburg’s allegations centered on stock price manipulation and fraud at a particularly critical time when Adani was attempting to raise $2.5 billion through a share offering. The Adani group refuted these claims, asserting that they lacked factual basis and maintained compliance with all relevant regulations.

### How Adani Became Asia’s Richest Man

In recent years, Adani’s wealth skyrocketed, increasing by about 2,000% as the share prices of his companies surged. Before Modi’s administration, Adani maintained rapport with the rival Congress Party, which was in power in Gujarat when much of his early work commenced. R N Bhaskar, a journalist who has penned a biography on the tycoon, remarked that Adani has maintained relationships with virtually every politician in power.

Supporters of Adani argue that he has adeptly aligned his business ambitions with government priorities by investing significantly in essential sectors such as renewable energy, defense, and agriculture. Furthermore, his international projects, particularly in strategically positioned nations like Sri Lanka, bolster New Delhi’s competitive stance against regional rivals like Beijing.