Sagar Adani, Executive Director of Adani Green Energy was issued a search warrant in March 2023 by FBI Special Agents and was also served with a grand jury subpoena, the US District Court order indicated on Thursday, November 21.

In or about March 2023, FBI special agents took steps in furtherance of the FBI investigation and the grand jury investigation that revealed the existence of those investigation, as well as certain crimes and individuals under investigation to the defendent Sagar Adani, which information was shared with the defendent Gautam Adani, the US District Court order said.

The order further stated that Sagar Adani and Gautam Adani made or caused others to make false and misleading statements regarding the bribery scheme to investors, potential investors and financial institutions.

FBI special agents also provided Sagar Adani with a copy of the search warrant on March 17, 2023, along with a grand jury subpoena. The search warrant identified offenses, individuals and entities under investigation by the US government, specifically violations of the FCPA, securities fraud, wire fraud and related conspiracies involving Sagar Adani and the defendants Gautam Adani and Vneet Jaain, the court order added.

The search warrant further described certain evidence subject to seizure, including evidence related to the payment of or an offer to pay, bribes, kickbacks or provide or offer to provide any other thing of value to Indian government officials in order to obtain or retain business advantages.

Pursuant to the judicially authorised search warrant, the FBI special agents took custody of electronic devices in his possession.

The news has resulted in a sharp drop in prices of the Adani Group companies, with most of the stocks declining between 10% to as much as 25% in Thursday’s trading session.

Following these developments, Adani Green Energy also called off its proposed US Dollar-denominated bond sale, according to its exchange filing on Thursday.

The Adani Group stocks, following this fall, has resulted in a total market capitalisation erosion of ₹2.6 lakh crore so far.