Gautam Adani faces no bribery charges, Adani Group counters US DoJ claims

Adani Green has denied media reports claiming Adani executives were charged with bribery and corruption, clarifying that the charges relate to wire and securities fraud

Amid uproar over corruption charges against the Adani Group, Adani Green Energy Ltd (AGEL) clarified on November 27 that allegations against Gautam Adani, Sagar Adani, and senior executive Vneet Jaain under the US Foreign Corrupt Practices Act (FCPA) by the US Department of Justice (DoJ) are “incorrect.” However, the company acknowledged that the executives face three other charges, including securities and wire fraud, in the indictment. 

 

In a regulatory filing, AGEL emphasised that while allegations of securities and wire fraud have been levelled, there are no charges related to bribery or foreign corruption.

 

“Media articles stating that our directors Gautam Adani, Sagar Adani, and Vneet Jaain have been charged with violations of the US Foreign Corrupt Practices Act (FCPA) are incorrect,” AGEL said.

 

 

What are the charges against Adani executives?

 

AGEL clarified that the charges against its executives pertain to the following:

 

• Count Two: Alleged securities fraud conspiracy

 

• Count Three: Alleged wire fraud conspiracy

 

• Count Four: Alleged securities fraud

 

The company further explained that the DoJ’s indictment, comprising five counts, excludes Gautam Adani, Sagar Adani, and Vneet Jaain from Count One, which addresses “conspiracy to violate the FCPA,” and Count Five, related to “conspiracy to obstruct justice.”

 

The bribery charges in Count One implicate individuals associated with Azure Power and CDPQ, a Canadian institutional investor, including Ranjit Gupta, Cyril Cabanes, Saurabh Agarwal, Deepak Malhotra, and Rupesh Agarwal. AGEL reiterated that no Adani executives are named in this count.

Chargesheet lacks details on bribery allegations: Mukul Rohatgi

 

Former Attorney-General for India, Mukul Rohatgi, told reporters on Wednesday that he had reviewed the 54-page indictment issued by the US court and identified five charges or counts. He remarked that while allegations suggested Adanis had bribed Indian officials in connection with power supply and purchase, the chargesheet did not name any individuals or provide specific details. He questioned how one could adequately respond to such generalized accusations.

  “I don't know how one can respond to these kind of chargesheet," he said.

 

Adani’s focus on the US DoJ and Indian media

 

The Adani Group criticised the DoJ’s indictment, stating it lacks evidence of bribes paid by its executives to Indian government officials. It argued the case is based on hearsay and assumptions from former Azure Power employees and CDPQ representatives.

 

“All of this is based on likelihoods and hearsay from former employees of Azure Power and CDPQ, placing the US DoJ’s and SEC’s actions on dangerously shaky ground—both morally and legally,” the company stated.

 

Impact of allegations on the Adani Group

 

The US investigation and what the Adani Group terms “reckless false reporting” have severely impacted the conglomerate. This includes the cancellation of international projects, such as the Kenya airport project, disruptions in the Bangladesh power deal, financial market volatility, and heightened scrutiny from strategic partners and investors.

 

Alleged Adani bribery case details

 

According to US authorities, the alleged bribery scheme concealed crucial information from American investors and financial institutions. During the period under review, the Adani Group reportedly raised billions of dollars for renewable energy projects.

 

The US Securities and Exchange Commission (SEC) has filed civil charges, including securities fraud and wire fraud conspiracy. Criminal charges by the US Attorney’s Office for the Eastern District of New York extend to FCPA violations. The charges implicate Adani executives, along with individuals from Azure Power and former CDPQ employees.

 

This indictment poses a significant challenge for the Adani Group, which had recently stabilised its financial position after allegations of stock manipulation and accounting fraud by Hindenburg Research in 2023. The earlier accusations caused a temporary $150 billion loss in market value for Adani companies, though the group managed to recover much of it through strong denials and recovery measures.

 

The latest allegations risk reigniting concerns over the conglomerate’s corporate governance and investor trust.  with agency inputs)