Gautam Adani, once among the world’s richest individuals, saw his wealth take a dramatic hit on Thursday, losing a staggering $12 billion in a single day. The sharp decline comes after US prosecutors unveiled allegations of bribery and securities fraud against Adani, his nephew Sagar Adani and other top Adani Group executives. These allegations have cast a long shadow over the Indian conglomerate’s reputation and triggered a sell-off in the stock market.

The charges, stemming from allegations of more than $250 million in bribes paid to Indian government officials between 2020 and 2024, have shaken investor confidence in the Adani Group. US prosecutors allege the bribes were intended to secure solar contracts and to manipulate government decisions. In addition, the group’s energy arm, Adani Green Energy, is accused of misleading investors by issuing false statements in raising over $3 billion in loans and bonds.

The effect on Adani’s wealth was immediate. His net worth, which was $69.8 billion, dropped to $58.5 billion, knocking him down from 22nd to 25th on the Forbes Real-Time Billionaires List. The charges also sent Adani Group shares into a free fall, with shares of key companies such as Adani Green Energy, Adani Ports and Adani Energy Solutions dropping the maximum allowed under market rules – 20%. In total, the market capitalization of the Adani Group’s 10 listed companies fell by ₹2 lakh crore (about $24 billion), marking the group’s worst trading day since the Hindenburg Research report in early 2023.

The drop in share value was accompanied by a sharp fall in the prices of Adani Group’s dollar-denominated bonds. Debt maturing in 2027 and 2030 traded at a steep discount, well below 80 cents on the dollar. Moody’s Ratings called the situation “credit negative”, citing concerns about the group’s corporate governance and liquidity.

This latest scandal follows a turbulent year for Adani, whose fortunes were already significantly affected by a 2023 report by Hindenburg Research accusing the group of stock manipulation and financial misconduct. That report saw Adani’s net worth drop by $80 billion, and over $150 billion in market value was wiped from his company. While Adani had struggled to recover in 2024, briefly restoring its net worth to over $100 billion, this new crisis threatens to undo much of that progress.

For Adani Group, a key player in India’s renewable energy sector, the allegations and subsequent market turmoil pose a serious challenge to its business and ambitions. Analysts warn ongoing projects could be disrupted and future investment harder to secure as global scrutiny of the group intensifies.

The US Department of Justice and the Securities and Exchange Commission are pursuing legal action, further complicating the group’s recovery efforts. As the fallout continues, Adani faces an uphill battle to restore both its wealth and the group’s reputation in the eyes of investors and global markets.