Gautam Adani's US indictment: Adani Group dubs $250 million bribery charge as 'baseless', vows legal action
By Sunita Iyer | First Published Nov 21, 2024, 1:28 PM ISTThe Adani Group on Thursday strongly denied the bribery and fraud allegations brought against its chairman, Gautam Adani, and several other executives by US authorities.
The Adani Group on Thursday strongly denied the bribery and fraud allegations brought against its chairman, Gautam Adani, and several other executives by US authorities. In a statement, a spokesperson for the Indian conglomerate labeled the accusations as "baseless," stressing that the defendants, including Adani and his nephew, Sagar, are presumed innocent until proven guilty.
"The allegations made by the US Department of Justice and the US Securities and Exchange Commission against directors of Adani Green are baseless and denied. As stated by the US Department of Justice itself, "the charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty." All possible legal recourse will be sought," Adani Group said in a media statement.
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"The Adani Group has always upheld and is steadfastly committed to maintaining the highest standards of governance, transparency and regulatory compliance across all jurisdictions of its operations. We assure our stakeholders, partners and employees that we are a law-abiding organisation, fully compliant with all the law," the statement added.
Adani Group Spokesperson says, "The allegations made by the US Department of Justice and the US Securities and Exchange Commission against directors of Adani Green are baseless and denied. As stated by the US Department of Justice itself, "the charges in the indictment are… pic.twitter.com/rSuxuHTFUo
— ANI (@ANI)This response follows criminal charges filed by the U.S. Department of Justice (DOJ) and the US Securities and Exchange Commission (SEC) against Gautam Adani and several others linked to the group's renewable energy arm, Adani Green Energy Ltd. The charges accuse them of orchestrating a scheme to pay over $250 million in bribes to Indian officials in exchange for favorable terms on solar power contracts. According to the DOJ, the bribes were allegedly concealed from U.S. investors and banks that helped finance the projects.
The indictment claims that between 2020 and 2024, the Adani Group and its subsidiaries raised over $2 billion in loans from US-based financial institutions and asset managers, misrepresenting the company's anti-bribery policies and engaging in fraudulent practices to secure contracts. Prosecutors argue that the scheme was designed to inflate profits from solar energy contracts worth billions of dollars, with the bribes allegedly benefiting state officials, particularly in Andhra Pradesh.
In addition to Gautam and Sagar Adani, the charges also involve former executives of Azure Power Global, another firm accused of being complicit in the bribery scheme. The SEC has filed a separate civil case, accusing the Adanis and Azure Power officials of violating anti-fraud provisions under US securities laws.
The legal turmoil surrounding the Adani Group has triggered significant financial repercussions. On the heels of the indictment, Adani Green Energy scrapped a $600 million bond issue, despite it being oversubscribed hours before the news broke. The group’s stocks also plummeted on the Mumbai exchange, shedding an estimated $30 billion in market value, causing Gautam Adani's wealth to drop significantly.
The charges are the latest in a series of challenges faced by the Adani Group, which has previously been embroiled in controversy following allegations of stock manipulation and fraud by US short-seller Hindenburg Research in 2023. While the group has denied those allegations, the new indictment may intensify scrutiny on its business practices.
The DOJ's indictment, unsealed in a Brooklyn court, describes an elaborate scheme in which the Adani family allegedly paid bribes to ensure favourable solar power deals. Prosecutors also claim that some involved in the conspiracy obstructed investigations by deleting emails and providing false information to the US government.
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