In response to charges filed by US prosecutors accusing Adani Group Chairman Gautam Adani and other Indian executives of involvement in an alleged bribery scheme, Adani Green Energy issued an official statement, saying it will not move forward with its proposed USD-denominated bond offerings. The company’s decision comes amid growing scrutiny and legal challenges surrounding the group. Adani Green Energy, a major player in India’s renewable energy sector, made this move as it explores the legal and financial implications of the ongoing investigation.
In an exchange filing on Thursday, Adani Green Energy Limited said that the United States Department of Justice and the United States Securities and Exchange Commission have issued a criminal indictment and brought a civil complaint, respectively, in the United States District Court for the Eastern District of New York, against our Board members, Gautam Adani and Sagar Adani. "The United States Department of Justice has also included our Board member, Vneet Jaain, in such criminal indictment. In light of these developments, our subsidiaries have presently decided not to proceed with the proposed USD-denominated bond offerings," the statement added.
Adani Group terms allegations as baseless
The Adani Group also denied allegations made by the US Department of Justice and the US Securities and Exchange Commission and termed them baseless. "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," Adani Group Spokesperson added.
What did US Attorney's Office say on the matter?
According to the US Attorney's Office, Eastern District of New York, "A five-count criminal indictment was unsealed in federal court charging Gautam Adani, Sagar R Adani, and Vneet S. Jaain, with conspiracies to commit securities and wire fraud and substantive securities fraud for their roles in a multi-billion-dollar scheme to obtain funds from U.S. investors and global financial institutions on the basis of false and misleading statements."
Notably, the US prosecutors have expanded their indictment in the alleged bribery case involving the Adani Group, charging several individuals, including Ranjit Gupta and Rupesh Agarwal, former executives of a renewable energy company previously listed on the New York Stock Exchange. The charges also name Cyril Cabanes, Saurabh Agarwal, and Deepak Malhotra, former employees of a Canadian institutional investor, for "conspiring to violate" the Foreign Corrupt Practices Act (FCPA). The indictment links these individuals to an alleged scheme involving corruption and misconduct. Investigations continue into the broader implications of the case.
"As alleged, the defendants orchestrated an elaborate scheme to bribe Indian government officials to secure contracts worth billions of dollars and Gautam S. Adani, Sagar R. Adani and Vneet S. Jaain lied about the bribery scheme as they sought to raise capital from U.S. and international investors," stated United States Attorney Breon Peace. Breon Peace further alleged that the people named in the indictment undermined the integrity of international financial markets and defrauded US and global investors.
Obstruction allegations amid bribery probe
The indictment also accuses the executive of obstructing investigations by the FBI, Department of Justice (DOJ), and Securities and Exchange Commission (SEC). The US Attorney's office says that the charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty. The investigation was conducted by the FBI New York's Corporate, Securities and Commodities Fraud and International Corruption Units. The US government's case is being handled by the Business and Securities Fraud Section of the U.S. Attorney's Office for the Eastern District of New York and the Criminal Division's Fraud Section.
(With inputs from ANI)
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