The Adani Group, Chairman Gautam Adani, and his nephew, Sagar Adani, were reportedly summoned by the US Securities and Exchange Commission (SEC) to respond to charges of bribery and fraud through the payment of $265 million (Rs 2,200 crore) in bribes to garner rich solar power contracts.
Gautam Adani, 62, and Sagar Adani, a director at Adani Green Energy Ltd., are charged with planning payments to Indian government officials between 2020 and 2024 in a recent indictment that was unsealed in the New York Eastern District Court. It appears that the bribes were paid to secure contracts for solar energy supply that were expected to generate about USD 2 billion in profits over a 20-year period.
The SEC claims that the Adani Group, in conjunction with Cyril Cabanes, an executive of Azure Power Global, conducted deceptive practices to raise capital from U.S. and international investors. The group was accused of raising USD 2 billion in loans and bonds from American companies by making false claims about their anti-bribery policies.
Adani’s Shantivan Farm home in Ahmedabad and his nephew Sagar’s Bodakdev home in the same city have received summonses to respond to the SEC within 21 days. The notice, which was sent by the New York Eastern District Court on November 21,.
Within 21 days after service of this summons on you (not counting the day you received it)…you must serve on the plaintiff (SEC) an answer to the attached complaint or a motion under Rule 12 of the Federal Rules of Civil Procedure,” said a November 21 notice sent through the New York Eastern District Court.
“If you fail to respond, judgment by default will be entered against you for the relief demanded.
Adani Group Denies Allegations
The Adani Group has dismissed the allegations as “baseless” and intends to investigate every legal remedy possible to clear their names.
“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 laws.”
U.S. Attorney Breon Peace charged in a statement that the defendants had planned a bribery scheme to sway Indian government officials while deceiving investors about the company’s operations. According to an investigation that started in 2022, it also included accusations of obstructing justice.
“As alleged, the defendants orchestrated an elaborate scheme to bribe Indian government officials to secure contracts worth billions of dollars and lied about the bribery scheme as they sought to raise capital,” Peace stated.
If the allegations are proven, it may have severe implications for the Adani Group, which is already in trouble over several financial deals. News of the bribery case has only added to the long list of scandals surrounding the conglomerate.
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