US investigating billionaire Gautam Adani and his group over bribery charges: Report
By Team Asianet Newsable | First Published Mar 16, 2024, 10:32 AM ISTUS prosecutors have reportedly expanded their investigation into the Adani Group, examining potential bribery allegations and scrutinizing the actions of the conglomerate's billionaire founder.
US prosecutors have expanded their investigation into the Adani Group, examining potential bribery allegations and scrutinizing the actions of the conglomerate's billionaire founder, according to a Bloomberg report quoting sources familiar with the matter. Investigators are delving into whether any Adani entity, including individuals associated with the company such as Gautam Adani, participated in illicit payments to officials in India in exchange for favorable treatment regarding an energy project, the sources, who preferred to remain anonymous, revealed.
The inquiry, which also encompasses renewable energy firm Azure Power Global, is under the purview of the US attorney's office for the eastern district of New York and the Justice Department's fraud unit in Washington, insiders familiar with the investigation confirmed to Bloomberg.
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"We are not aware of any investigation against our chairman," Adani Group said in an emailed statement. "As a business group that operates with the highest standards of governance, we are subject to and fully compliant with anti-corruption and anti-bribery laws in India and other countries."
Spokespersons for the Justice Department in Brooklyn and Washington opted not to provide a statement. Despite requests for comment, Azure did not respond. It's important to note that neither Gautam Adani, his company, nor Azure has been formally charged with any wrongdoing by the Justice Department. It's worth mentioning that investigations do not always result in prosecutions.
Under US law, federal prosecutors have the authority to investigate foreign corruption allegations if they have connections to American investors or markets.
Adani's extensive business conglomerate faced turbulence early last year following allegations from short-seller Hindenburg Research. The accusations included claims of stock price manipulation and accounting fraud. Adani Group vehemently refuted these allegations, and since then, the shares have largely rebounded from their initial decline.
Following the report, both the Justice Department and the Securities and Exchange Commission initiated investigations into some of the allegations. Sources indicate that the Adani probe has progressed to an advanced stage. Notably, the DOJ retains the option to continue its investigations without prior notification to the involved parties. Meanwhile, Azure has been contending with the repercussions of whistle-blower complaints concerning illicit payments. Late last year, the company was delisted from the NYSE due to delayed filings.
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