Indian billionaire Gautam Adani and his nephew, Sagar Adani, have agreed to pay a total of $18 million to resolve civil fraud allegations brought by U.S. regulators. The settlement, which has received court approval, addresses claims of bribery and fraud linked to solar energy contracts in India. This development also signals that U.S. prosecutors are likely to discontinue related criminal charges that were previously pursued against members of the Adani leadership.

Under the terms of the agreement with the Securities and Exchange Commission (SEC), Gautam Adani will pay a penalty of $6 million, while Sagar Adani will pay $12 million. Both individuals consented to the final judgment without admitting or denying the allegations outlined in the civil complaint. The case centered on accusations that the two men misled investors as part of a scheme involving bribes allegedly paid to Indian government officials for solar energy contracts, specifically implicating executives at Azure Power Global. The Adani Group has consistently refuted these allegations, labeling them as baseless. Adani Green Energy, the renewable energy firm, clarified in a filing that it was not a party to these proceedings and faced no charges itself.

Following the announcement of the SEC settlement, shares of Adani Group’s flagship company, Adani Enterprises, and Adani Green Energy pared earlier losses and saw a modest recovery. Both stocks have shown significant gains this year, with Adani Enterprises up approximately 24% and Adani Green up around 41%, according to market data. Analysts suggest that the resolution of legal uncertainties in the U.S. could potentially facilitate the Adani Group’s access to international capital markets, which is crucial for funding its ambitious renewable energy and infrastructure expansion plans. The conglomerate reported nearly $29 billion in net debt as of last September, with a substantial portion financed through global banks and capital markets.

The Adani Group, a sprawling conglomerate led by Gautam Adani, oversees diverse sectors including ports, power, and infrastructure. The group has faced intense scrutiny in recent years, including allegations of accounting fraud and stock manipulation made in a 2023 report by short seller Hindenburg Research, which the Adani Group also vehemently denied. The current settlement marks another significant step in navigating the various legal and financial challenges that have impacted the group’s operations and public perception.