Gautam Adani, the billionaire chair of Adani Group and one of the world's richest people, has been indicted in New York over his role in an alleged multibillion-dollar bribery and fraud scheme, according to US prosecutors.

Authorities said Adani and seven other defendants, including his nephew Sagar Adani, agreed to pay about $265 million in bribes to Indian government officials to obtain contracts expected to yield $2 billion of profit over 20 years, and develop India's largest solar power plant project.

Fallout for the Adani empire was immediate. Adani Green Energy cancelled plans on Thursday to raise $600 million in US dollar-denominated bonds, according to four sources with direct knowledge of the matter. The bond had been priced but was pulled following the news.

Adani Green Energy did not immediately respond to a request for comment on the shelved transaction.

In early Asian trading on Thursday, Adani dollar bonds slumped, with prices down between 3-5c on bonds for Adani Ports and Special Economic Zone. The falls were the largest since the Adani Group came under a short-seller attack in February 2023. The Adani Group has not responded to requests for comment on the indictment.

Adani group denies charges
Adani group has denied charges of bribing to secure favourable terms for solar power contracts, saying the allegations by US prosecutors are baseless and the conglomerate is compliant with all laws.

It said all possible legal recourse will be sought. "The allegations made by the US Department of Justice and the US Securities and Exchange Commission against directors of Adani Green are baseless and denied," the group spokesperson said in a statement.

The spokesperson pointed to the US Department of Justice statement that said "the charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty".

"The Adani Group has always upheld and is steadfastly committed to maintaining the highest standards of governance, transparency and regulatory compliance across all jurisdictions of its operations. We assure our stakeholders, partners and employees that we are a law-abiding organisation, fully compliant with all laws," the spokesperson added.