Indian billionaire Gautam Adani faces mounting challenges after U.S. prosecutors indicted him and his nephew, Sagar Adani, on charges of fraud and bribery. Arrest warrants have been issued for both, alleging a $265 million scheme to bribe Indian officials for lucrative power-supply contracts. The news sent shockwaves through markets, with Adani Group companies losing billions in value and a major deal in Kenya canceled.

The indictment accuses Adani and associates of using bribes to secure projects expected to generate $2 billion in profits over 20 years, including India's largest solar power plant. Following the announcement, Adani Green Energy's $600 million bond sale was pulled, and its shares dropped by 19%. Other Adani Group firms also saw significant losses, with the conglomerate's total market value falling by $27 billion in a single day.

Adani Group denied the charges, calling them “baseless” and asserting its compliance with all laws. U.S. authorities, however, allege that the conglomerate misled investors, including those in the U.S., about its anti-corruption policies. The case highlights stricter U.S. oversight of foreign companies raising capital from American investors, especially regarding transparency and corruption.

This scandal adds to the pressure on Indian regulators and Prime Minister Narendra Modi's government, which opposition parties accuse of favoring Adani. As investigations continue, market analysts warn that the fallout could impact India's financial markets and international investment reputation, with the Adani empire facing its biggest crisis yet.