New Delhi: Billionaire Gautam Adani and his nephew Sagar Adani have not been charged with any violations of the US Foreign Corrupt Practices Act (FCPA) in the indictment filed by US authorities in a court in a bribery case, the Adani Group said on Wednesday.
Gautam Adani, founder chairman of the ports-to-energy conglomerate, Sagar Adani, and another key executive, Vneet Jaain, have been charged by the US Department of Justice with being part of an alleged scheme to pay USD 265 million in bribes to Indian officials to win contracts for supply of solar electricity that would yield USD 2 billion profit over 20 years.
In a stock exchange filing, Adani Green Energy Ltd, which is at the centre of the bribery allegations, said reports claiming that the three have been charged with FCPA violations “are incorrect”.
What are the charges against Adani executives?
– AGEL clarified that the charges against its executives pertain to the following:
– Count Two: Alleged securities fraud conspiracy
– Count Three: Alleged wire fraud conspiracy
– Count Four: Alleged securities fraud
The company further explained that the DoJ’s indictment, comprising five counts, excludes Gautam Adani, Sagar Adani, and Vneet Jaain from Count One, which addresses “conspiracy to violate the FCPA,” and Count Five, related to “conspiracy to obstruct justice.”
The bribery charges in Count One implicate individuals associated with Azure Power and CDPQ, a Canadian institutional investor, including Ranjit Gupta, Cyril Cabanes, Saurabh Agarwal, Deepak Malhotra, and Rupesh Agarwal. AGEL reiterated that no Adani executives are named in this count.
Former Attorney General Mukul Rohatgi is expected to address the media on the allegations faced by the Adani Group in the US court case.
Adani’s focus on the US DoJ and Indian media
The Adani Group criticized the DoJ’s indictment, stating it lacks evidence of bribes paid by its executives to Indian government officials. It argued the case is based on hearsay and assumptions from former Azure Power employees and CDPQ representatives.
“All of this is based on likelihoods and hearsay from former employees of Azure Power and CDPQ, placing the US DoJ’s and SEC’s actions on dangerously shaky ground—both morally and legally,” the company stated.
Impact of Allegations on the Adani Group
The US investigation and what the Adani Group terms “reckless false reporting” have severely impacted the conglomerate. This includes the cancellation of international projects, such as the Kenya airport project, disruptions in the Bangladesh power deal, financial market volatility, and heightened scrutiny from strategic partners and investors.
Alleged Adani bribery case details
According to US authorities, the alleged bribery scheme concealed crucial information from American investors and financial institutions. During the period under review, the Adani Group reportedly raised billions of dollars for renewable energy projects.
The US Securities and Exchange Commission (SEC) has filed civil charges, including securities fraud and wire fraud conspiracy. Criminal charges by the US Attorney’s Office for the Eastern District of New York extend to FCPA violations. The charges implicate Adani executives, along with individuals from Azure Power and former CDPQ employees.
This indictment poses a significant challenge for the Adani Group, which had recently stabilised its financial position after allegations of stock manipulation and accounting fraud by Hindenburg Research in 2023. The earlier accusations caused a temporary $150 billion loss in market value for Adani companies, though the group managed to recover much of it through strong denials and recovery measures.
The latest allegations risk reigniting concerns over the conglomerate’s corporate governance and investor trust.
