Why has Indian billionaire Gautam Adani been charged in a US bribery case?

It’s the latest in a recent series of fraud allegations trailing the embattled billionaire’s Adani Group.

United States prosecutors indicted billionaire Gautam Adani, one of the world’s richest people, on Wednesday over his alleged lead role in a bribery scheme linked to a mega-sized solar power plant.

In a statement, the US Department of Justice (DOJ) alleged that Adani – a close ally of India’s Prime Minister Narendra Modi – and seven of his associates, including his nephew Sagar Adani, promised Indian officials more than $250m in bribes to secure energy contracts being funded by international investors, including some from the US.

On Thursday, the Adani Group denied the allegations and called the indictment a “baseless move”. The group said it has “steadfastly maintained the highest possible standards of governance and transparency” and would seek “all possible legal recourse”.

Adani Group companies lost about $28bn in market value on Thursday morning following the indictment as shares in the group’s listed firms fell by between 10 and 20 percent on Indian stock exchanges. Adani Green Energy also cancelled a $600m bond sale.

Wednesday’s indictment comes more than a year after a US short seller and forensic auditing firm, Hindenburg Research, accused the Adani Group of stock manipulation and accounting fraud. Hindenburg has a track record of investigating companies. As a short seller, it profits when the shares of a company it sells a stake in fall.

The US indictment did not clarify if the charges were based on the Hindenburg allegations.

Opposition parties in India called for Adani’s arrest on Thursday. Raul Gandhi, leader of the opposition Congress Party, told reporters on Thursday that PM Modi was “protecting” his