Gautam Adani has recently been charged by US prosecutors for allegedly being part of an elaborate scheme to pay USD 265 million (about Rs 2,200 crore) bribe to Indian officials in exchange for the favourable terms for solar power contracts.
New Delhi: Billionaire Gautam Adani has recently been charged by US prosecutors for allegedly being part of an elaborate scheme to pay USD 265 million (about Rs 2,200 crore) bribe to Indian officials in exchange for the favourable terms for solar power contracts. According to the news agency PTI report, Adani, and seven others, including his nephew Sagar Adani, have been charged by the US Department of Justice with paying bribes to unidentified officials of state governments in Andhra Pradesh and Odisha to buy expensive solar power, potentially earning more than USD 2 billion in profit over 20 years.
Meanwhile, Adani Group, denied the charges, stating the allegations by US prosecutors are “baseless” and the conglomerate is “compliant with all laws”. According to the TOI report, the Securities and Exchange Board of India (SEBI) is conducting a preliminary investigation to determine if the Adani Group violated disclosure norms while its chairman and other senior officials were dealing with a grand jury subpoena from the US Department of Justice (DoJ). This subpoena and related investigations by the FBI have been ongoing for over a year, focusing on allegations of wire fraud, violations of securities laws, and other legal issues in the United States.
SEBI, the market regulator, has directed stock exchanges to inquire whether any of the Adani Group companies violated listing rules, specifically the Listing Obligation & Disclosure Requirements (LODR), in relation to the ongoing investigations by the U.S. Department of Justice (DoJ) and the Securities and Exchange Commission (SEC), sources were quoted as saying to TOI.
Earlier in March 2024, the Adani Group allegedly misled the NSE and BSE by claiming that Adani Green Energy had not received a notice from the US Department of Justice (DoJ) regarding bribery allegations. The DoJ indictment accused Gautam and Sagar Adani of pressuring group members to make false statements about ongoing investigations into Adani Green Energy.
According to the US Justice Department, the Foreign Corrupt Practices Act (FCPA) prohibits paying foreign officials to influence actions, induce unlawful omissions, or secure improper advantages. The US Securities and Exchange Commission (SEC) has also charged Gautam and Sagar Adani and Azure Power executive Cabanes with “violating the anti-fraud provisions of the federal securities laws”.