 "Gautam Adani charged by US in $265 million bribery case: Top things we know")
Billionaire industrialist Gautam Adani has been charged by the United States in an alleged bribery and fraud scheme amounting to $265 million. US prosecutors alleged that Adani, his nephew Sagar Adani, and six other defendants paid bribes to Indian government officials to secure solar energy supply contracts yielding $2 billion in profits over 20 years.
Adani and others have been charges by the US Securities and Exchange Commission (SEC) in New York for allegedly violating the Foreign Corrupt Practices Act (FCPA). A complaint was filed in the US District Court for the Eastern District of New York.
“During the alleged scheme, Adani Green raised more than $175 million from US investors, and Azure Power’s stock was traded on the New York Stock Exchange,” an official press release stated.
What is Gautam Adani accused of?
According to the SEC complaint, Adani and his nephew are accused of orchestrating a bribery scheme to secure above-market energy deals, benefiting Adani Green and Azure Power. Sagar Adani serves as executive director on the board of Adani Green, the green energy arm of the group.
It is alleged that the bribery took place during a September 2021 note offering by Adani Green that raised $750 million, including approximately $175 million from US investors. Adani Green’s offering materials allegedly contained false claims about anti-corruption efforts, thereby deceiving US investors, the complaint further stated. The Adani Group reacted to the allegations, noting: "As stated by the US Department of Justice itself, "the charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty." All possible legal recourse will be sought. 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."
How is Azure Power linked to the case?
The SEC’s complaint also alleged that Cyril Cabanes, a former member of Azure Power’s Board of Directors, was involved in the bribery scheme. Azure Power, based in Gurugram, is another Indian energy company. “Cabanes allegedly facilitated the authorisation of bribes in furtherance of the scheme while in the United States and abroad,” the SEC said.
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Who are the other defendants in the case?
The complaint alleged the involvement of Adani and seven other defendants, including his nephew Sagar. The other named defendants are:
- Ranjit Gupta – Former chief executive officer (CEO) of Azure Power Global
- Rupesh Agarwal – Former chief strategy and commercial officer of Azure Power Global
- Cyril Cabanes – Former member of the board of directors at Azure Power Global
- Vneet Jaain – Executive at Adani Green Energy - Saurabh Agarwal - Deepak Malhotra
While the other defendants are Indian citizens, Cabanes is a dual French-Australian citizen residing in Singapore, prosecutors said.
Which laws is Adani accused of breaching?
An arrest warrant has been issued against Adani and his nephew, and prosecutors plan to hand the warrants to foreign law enforcement. Adani and others allegedly violated antifraud provisions of federal securities laws, including the FCPA, by misleading US investors about their anti-corruption claims. Through the scheme, they allegedly raised over $3 billion in loans and bonds for the company while hiding the corruption from lenders and investors.