Gautam Adani indicted in US: Congress reiterates demand for JPC probe, BJP questions timing of charges
By Sunita Iyer | First Published Nov 21, 2024, 12:12 PM ISTGautam Adani has been charged by US federal prosecutors for allegedly paying over $250 million in bribes to Indian officials in return for favourable terms on solar power contracts.
In a significant development that has stokes a fresh round of political clash between BJP and Congress, the US federal prosecutors have charged Indian billionaire Gautam Adani and several officials from his business empire with allegedly paying over $250 million in bribes to Indian government officials between 2020 and 2024. These bribes were reportedly intended to secure favourable solar energy contracts, potentially yielding profits exceeding $2 billion.
The charges, announced by the US Securities and Exchange Commission (SEC), have brought renewed attention to the ongoing controversy surrounding the Adani Group and its alleged ties to the Indian government, particularly Prime Minister Narendra Modi. This has led the Congress Party to once again demand a Joint Parliamentary Committee (JPC) investigation into the dealings of the Adani Group, while the Bharatiya Janata Party (BJP) has questioned both the timing of the charges and the opposition's political motives.
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Vindicates demand for JPC probe: Congress
With Gautam Adani facing charges of alleged bribery and fraud in the US, the Congress on Thursday claimed this development "vindicates" its demand for a Joint Parliamentary Committee (JPC) probe into the various "scams" involving his conglomerate.
The opposition party also urged the appointment of "a new and credible" head for SEBI to ensure the completion of securities law investigations into what it termed the "Adani Mega Scam."
Congress General Secretary (Communications) Jairam Ramesh criticized SEBI, stating that the actions of the US Securities and Exchange Commission (SEC) highlight the inadequacies of its Indian counterpart. He alleged that SEBI has failed to effectively investigate securities and other legal violations by the Adani Group, particularly regarding the source of its investments and the role of shell companies.
"The indictment of Gautam Adani and others by the Securities and Exchanges Commission (SEC) of the US vindicates the demand that the Indian National Congress has been making since Jan 2023 for a Joint Parliamentary Committee (JPC) investigation into the various Modani scams," Ramesh said in a post on X.
"The INC had asked a hundred questions in its Hum Adani ke Hain (HAHK) series bringing out the various dimensions of these scams and of the intimate nexus that has existed between the PM and his favourite businessman. These questions have remained unanswered," he said.
Also read: As Adani Group stocks plunge up to 20%, take a look at Gautam Adani's net worth
The Congress has reiterated its demand for a Joint Parliamentary Committee (JPC) investigation into the Adani Group's transactions, citing concerns over growing monopolization in key sectors of the Indian economy. This monopolization, according to Congress leader Jairam Ramesh, is driving inflation and creating significant foreign policy challenges, particularly in India's neighborhood.
The indictment of Gautam Adani and others by the Securities and Exchanges Commission (SEC) of the US vindicates the demand that the Indian National Congress has been making since Jan 2023 for a Joint Parliamentary Committee (JPC) investigation into the various Modani scams. The…
— Jairam Ramesh (@Jairam_Ramesh)Senior Congress leader Sam Pitroda remarked that the indictment is a damaging blow to India's reputation on the global stage.
"Very surprised and shocked to see that #SEC charges three senior executives in two actions alleging massive #bribery scheme involving Indian Energy companies #Adani Green and #Azure Power. It is a huge blow to the #Indian name and fame," Pitroda said in a post on X.
"I am sure there is more to come"," he also said.
Very surprised and shocked to see that charges three senior executives in two actions alleging massive scheme involving Indian Energy companies Green and Power. It is a huge blow to the name and fame.
I am sure there is more to come……
Congress leader Manish Tewari reaffirmed the party's demand for a Joint Parliamentary Committee (JPC) probe into the dealings of the Adani Group.
"THERE SHOULD NOW BE A JPC INTO L' AFFAIRE @gautam_adani," he said in a post on X.
"Indian billionaire Gautam Adani and other executives were charged with paying more than $250 million in bribes to Indian government officials and concealing them from US investors," Tewari said.
THERE SHOULD NOW BE A JPC INTO L’ AFFAIRE
Indian billionaire Gautam Adani and other executives were charged with paying more than $250 million in bribes to Indian government officials and concealing them from US investors https://t.co/nt4AfVJiZE?
Praveen Chakravarty, who heads the Professionals' Congress and Data Analytics department of the party said, "among all the grave charges, the US District Court has also categorically stated that on Mar 19 2024 Adani Group lied to India's stock exchanges BSE & NSE."
"This is tantamount to duping Indian investors & a serious offence under SEBI law.
Over to Madhabi Puri Buch, yet again!" he said.
Among all the grave charges, the US District Court has also categorically stated that on Mar 19 2024 Adani Group lied to India’s stock exchanges BSE & NSE.
This is tantamount to duping Indian investors & a serious offence under SEBI law.
Over to Madhabi Puri Buch, yet again! pic.twitter.com/qDHnIpCsFv
In another statement, Jairam Ramesh highlighted the five-count indictment against Gautam Adani, Sagar R. Adani, and others, unsealed by the US Attorney's Office for the Eastern District of New York, which he said exposes further shocking details about Adani's alleged criminal activities.
"It alleges that they paid over $250 million (Rs 2,100 crore) in bribes to Indian government officials between 2020 and 2024. It states that the bribes were paid 'to obtain lucrative solar energy supply contracts with the Indian government, which were projected to generate more than $2 billion (Rs 16,800 crore) in profits after tax'," Ramesh said.
It alleges that "on several occasions, Gautam S Adani personally met with an Indian government official to advance the Bribery Scheme" and claims to have electronic and cellular phone evidence of this, the Congress leader said.
"All of this is consistent with a long record of fraud and criminality carried out with impunity with the obvious protection of the Prime Minister," Ramesh charged.
The five-count indictment of Gautam S Adani, Sagar R Adani and others unsealed by the US Attorney’s Office, Eastern District of New York has revealed more shocking details about Adani’s criminal activities. It alleges that they paid over $250 million (Rs 2,100 crore) in bribes to… https://t.co/PTcjMzLwBh
— Jairam Ramesh (@Jairam_Ramesh)The fact that a foreign jurisdiction had to conduct a proper investigation into Adani underscores how Indian institutions have been undermined under BJP rule, eroding decades of institutional development due to the greed and power hunger of its leaders, the Congress leader stated.
"The answer is clearly for a new and credible SEBI head to be appointed to complete the securities law investigations into the Adani MegaScam, and for a JPC to be set up immediately to investigate its full extent," he said.
BJP's counterattack: Timing of charges questioned
The BJP on Thursday criticized the Congress for attacking the central government following charges of bribery and fraud against industrialist Gautam Advani by US prosecutors. The party pointed out that all the states mentioned in the indictment were governed by opposition parties at the time.
Amit Malviya, head of the BJP's IT department, also questioned the timing of the charges, noting their announcement just ahead of the Parliament session and the potential return of Donald Trump to the presidency.
This raises several questions, he said. "That the Congress is willing to be a prop in the hands of George Soros and his cabal speaks volumes," Malviya said on X in reply to Congress leader Jairam Ramesh's claim that the indictment vindicates the Congress's demand for a Joint Parliamentary Committee (JPC) investigation into the various "Modani scams".
Citing the US federal prosecutors' indictment, Malviya stated that the alleged bribes paid by the Adani Group to government officials occurred in Odisha, Tamil Nadu, Chhattisgarh, and Andhra Pradesh between July 2021 and February 2022.
He told Ramesh, "All the states mentioned here were Opposition-ruled during that time. So, before you pontificate, answer on the bribes the Congress and its allies accepted," he said.
At the time, Odisha and Andhra Pradesh were governed by the BJD and YSR Congress, respectively—regional parties unaffiliated with either the ruling or opposition alliances. Tamil Nadu was and remains under the DMK, a Congress ally, while Chhattisgarh was ruled by the Congress.
In response to Congress leader Jairam Ramesh’s remarks, Malviya advised reading the US document thoroughly before reacting. He emphasized that the indictment explicitly states the charges are allegations, and the defendants are presumed innocent unless proven guilty.
Malviya also argued that, on similar grounds, an Indian court could legitimately accuse American firms of bribing US government officials to block access to Indian markets.
"Should we then allow law to take its course and the concerned corporate to defend or plant ourselves in domestic politics of a foreign country," he said, asking the Congress to not get needlessly excited.
It is always good to read before one reacts. The document you quote says, “The charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty.”
But be as it may, the essence of the charge is that US and Indian companies agreed… https://t.co/Y3UivigtTx pic.twitter.com/MkMri2fPQs
The Congress, particularly Leader of Opposition in the Lok Sabha Rahul Gandhi, has repeatedly accused Prime Minister Narendra Modi's government of having close ties with the Adani Group. Gandhi has claimed that the port-to-energy conglomerate has received undue benefits under the BJP-led administration.
Both Adani and the BJP have denied these allegations. Adani has dismissed such claims outright, while the BJP has pointed out that the Adani Group has made significant investments in several Opposition-ruled states as well.
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