In a forceful response to the criminal indictment filed by the U.S. Department of Justice (DoJ) on October 24, the Adani Group has strongly rejected claims that key executives were involved in bribery. The indictment, publicly disclosed less than a week ago, alleged that Gautam Adani, his nephew Sagar Adani, and senior executive Vneet Jaain were part of a conspiracy involving bribes valued at $265 billion (₹2,029 crore, based on the rupee-dollar exchange rate in April 2022). These bribes were purportedly intended to persuade officials in five states to secure power purchase agreements with the Solar Energy Corporation of India (SECI).
The Adani Group’s Strong Rebuttal
In a regulatory filing, Adani Green Energy (AGEL) asserted that neither Gautam Adani nor the other executives named had been accused of bribery violations under the U.S. Foreign Corrupt Practices Act (FCPA). The group clarified that the charges against them were limited to securities fraud-related allegations stemming from the issuance of syndicated loans and dollar bonds. Specifically, AGEL stated, “Gautam Adani, Sagar Adani (executive director of AGEL), and Vneet Jaain (managing director of AGEL) have not been charged with any violation of the FCPA in the counts set forth in the indictment of the US Department of Justice (DoJ) or the civil complaint of the US Securities and Exchange Commission (SEC).”
The indictment accuses the Adani directors of three specific counts: conspiracy to commit securities fraud, conspiracy to commit wire fraud, and securities fraud itself. These charges are linked to the $2 billion in syndicated loans and an additional $1 billion raised through U.S. dollar bonds that were sold to American investors. The prospectus for these bonds, AGEL noted, included explicit statements asserting that the Adani Group had neither paid nor intended to pay bribes.
The Indictment Details and the Adani Response
The most serious allegations in the indictment are outlined in Count 1, which accuses the Adanis of conspiring to violate the FCPA by allegedly providing bribes, and Count 5, which involves the destruction of evidence. However, the Adani Group contends that neither Gautam Adani nor his nephew Sagar were named specifically in these charges. Furthermore, the group noted that the indictment failed to indicate any potential penalties or fines associated with these allegations.
The SEC, in a November 20 statement, charged Gautam Adani, Sagar Adani, and Cyril Cabanes, an executive at Azure Power Global Ltd (Adani’s U.S. affiliate), for alleged participation in a substantial bribery scheme. The SEC claimed this scheme enabled the two renewable energy firms to benefit from a lucrative solar energy project awarded by the Indian government.
Expert Legal Opinions Cast Doubt
Legal experts have weighed in on the indictment, with former attorney-general Mukul Rohatgi pointing out that the most serious counts, Counts 1 and 5, did not name Gautam or Sagar Adani. Rohatgi stressed that the indictment resembled a “chargesheet” where individuals are typically specified for their acts. “The Adanis are not named; some other people are named,” he said, hinting at the involvement of other executives from Azure Power Global’s Canadian partner.
Supreme Court counsel Mahesh Jethmalani went further, characterizing the indictment as part of a broader “deep state conspiracy” aimed at undermining the Adani Group. “It clearly smacks of malafide motives,” Jethmalani asserted, suggesting that the charges were politically driven and lacking merit.
Adani Group’s Position on the Indictment’s Allegations
According to the Adani Group’s statement, the allegations made by the DoJ were unfounded. AGEL emphasized that it had acted within the bounds of the law, particularly in relation to its dealings with SECI and its obligations to investors through bond issuances and loans. The company reaffirmed that the assurance of no bribery was made transparently in the bond prospectuses, further distancing itself from the bribery accusations.
The Broader Context and Repercussions
The U.S. indictment has drawn significant attention to the Adani Group’s practices, particularly as it pertains to the renewable energy sector. The group’s rebuttal, however, signals its readiness to counter what it perceives as unfounded claims and attempts to protect its reputation. The ongoing legal battle is poised to shape the discourse around international corporate governance and transparency, particularly for global companies with cross-border operations.
ALSO READ: Mexico Denies Trump’s Claims On Effectively ‘Closing The Border’
