US prosecutors have expanded their investigation into India's Adani Group to explore potential bribery allegations and the conduct of the company's founder, according to individuals familiar with the matter, reported Bloomberg.

The investigation is examining whether an Adani entity, or individuals associated with the company, including Gautam Adani, may have made payments to Indian officials in exchange for favorable treatment on an energy project. This probe also includes Indian renewable energy firm Azure Power Global.

Handled by the US Attorney’s Office for the Eastern District of New York and the Department of Justice's fraud unit in Washington, the investigation is ongoing.

Adani Group responded, stating they are unaware of any investigation against their chairman and maintain full compliance with anti-corruption laws in India and abroad.

The Department of Justice and Azure Power declined to comment, and no charges have been filed against Gautam Adani, Adani Group, or Azure. Investigations may not always result in prosecutions.

Adani Group, a major player in India's infrastructure sector, attracts global capital, which could implicate US laws on foreign corruption involving American investors or markets.

Last year, Adani Group faced allegations of stock price manipulation and accounting fraud from short-seller Hindenburg Research, which the conglomerate vehemently denied. Although the shares initially plummeted, they have since rebounded.

Following these allegations, both the Department of Justice and the Securities and Exchange Commission began investigating the claims. These investigations have progressed significantly, and the DOJ has the authority to pursue them without prior notification to the involved parties.

Adani Group and Azure Power are competitors in India's green-energy sector and have secured contracts for projects under the same state-run solar program. Adani Group aims to establish itself as a leading global renewable-energy company, especially as Prime Minister Narendra Modi, widely perceived as a close associate of Gautam Adani, promotes significant green initiatives.

Under the Foreign Corrupt Practices Act (FCPA), it is illegal for entities with connections to the United States, such as public listings, American investors, or joint ventures, to offer bribes to foreign government officials in exchange for favorable treatment. Prosecutors in Brooklyn have a track record of aggressively pursuing such cases, even if the accused companies do not trade in the US, but have American investors.

Investigations under the FCPA can be lengthy and complex due to the necessity of gathering evidence and interviewing witnesses located outside the US. However, these cases often attract significant attention and can result in substantial fines for companies, as well as victories for prosecutors.

While FCPA cases have increasingly targeted executives, it is relatively rare for the head of a major company to face charges. Gautam Adani, aged 61, has vehemently denied previous allegations of wrongdoing. In a speech to shareholders in July, he condemned the accusations made by Hindenburg Research as "malicious" and based on "false narratives."