Adani Group refutes US SEC's bribery charges, plans legal recourse
The Adani Group has vehemently denied allegations by US authorities of a $250 million bribery scheme. The charges, leveled by US prosecutors and the Securities and Exchange Commission (SEC), involve Gautam Adani, his nephew Sagar Adani, and former CEO of Adani Green Energy Vneet Jaain. The accused allegedly orchestrated this scheme between 2020 and 2024 to secure favorable terms for solar energy contracts.
Pledge to pursue legal action
Responding to the allegations, the Adani Group released an official statement on Thursday, calling the charges "baseless." The company has promised to seek all possible legal remedies. "As stated by the US Department of Justice itself, 'the charges in the indictment are allegations and defendants are presumed innocent unless and until proven guilty.' All possible legal recourse will be sought," said the company.
Adani Group reaffirms commitment to governance and transparency
The Adani Group has once again emphasized its commitment to maintaining the highest standards of governance, transparency, and regulatory compliance. "We assure our stakeholders, partners, and employees that we are a law-abiding organization, fully compliant with all laws," the statement read. The charges filed by US authorities not only involve Adani and his associates but also Azure Power Global executives and three ex-employees of a Canadian pension fund (CDPQ).
Allegations involve concealment of information from US investors
US authorities allege that the purported bribery scheme included withholding critical information from US investors and financial institutions. During the period in question, the Adani Group reportedly raised billions of dollars for its renewable energy projects. The SEC's civil charges include securities fraud and wire fraud conspiracy, while criminal charges filed by the US Attorney's Office for the Eastern District of New York include violations of the Foreign Corrupt Practices Act.
Indictment could reignite concerns over corporate governance
The indictment could revive fears of corporate governance and investor confidence in the Adani Group. This follows a recent recovery from Hindenburg Research's 2023 allegations, accusing the conglomerate of stock manipulation and accounting fraud. The SEC's complaint seeks permanent injunctions, civil penalties, and bars on Adani executives from serving as officers or directors in public companies. Meanwhile, US criminal charges could lead to extradition requests for the defendants, who mostly live in India.
Adani Group stocks tumble following indictment news
Following the indictment news, Adani Group stocks plummeted up to 20%, wiping off ₹2.25 lakh crore from the market capitalization of group companies. The investigation mainly centers on Adani Green Energy Ltd. and another company's contract to provide 12 gigawatts of solar power to the Indian government. This is one of the worst trading days for the conglomerate since January 25, 2023, when it was embroiled in a similar crisis after allegations by Hindenburg Research.
