“The Adani Group has issued a forceful rebuttal to the criminal indictment filed by the U.S. Department of Justice on October 24, which was made public recently.
The group asserted that neither Gautam Adani, his nephew Sagar Adani, nor key executive Vneet Jaain have been accused of bribery in the case.”
“The Adani Group’s claims appeared to contradict the indictment, which suggested their involvement in a conspiracy to distribute $265 million (₹2,029 crore, as per the April 2022 exchange rate) in bribes to officials across five states. The alleged goal was to persuade state-owned electricity distribution companies to sign power purchase agreements with the Solar Energy Corporation of India (SECI).
Adani Green Energy, along with its U.S. affiliate Azure Power Global, had received fiscal incentives from SECI to develop 12 gigawatts (GW) of solar power capacity. This power was to be supplied to SECI, which would then sell it to the distribution companies (discoms).”
“Adani Green Energy (AGEL) clarified in a regulatory filing that Gautam Adani, Sagar Adani (Executive Director of AGEL), and Vneet Jaain (Managing Director of AGEL) have not been charged with violating the Foreign Corrupt Practices Act (FCPA) in the indictment by the U.S. Department of Justice (DoJ) or the civil complaint by the U.S. Securities and Exchange Commission (SEC).
The FCPA, enacted in 1977, allows U.S. authorities to pursue bribe-givers in other jurisdictions if they have ties to the U.S. through business operations, commercial activities, or financial transactions.
AGEL noted that the three executives face charges related to alleged securities fraud conspiracy, wire fraud conspiracy, and securities fraud. These allegations involve syndicated loans totaling $2 billion raised from international financial institutions and U.S.-based asset management companies, along with $1 billion in U.S. dollar bonds sold to American investors. The bond prospectuses included specific assurances from the Adanis that no bribes had been paid or intended.
The DoJ indictment lists two significant charges: Count 1 for conspiracy to violate the FCPA by offering bribes and Count 5 for the destruction of evidence. However, the Adani Group emphasized that its executives were not specifically named under these counts and that no fine or penalty was detailed in the indictment.
Meanwhile, the SEC, in a statement on November 20, accused Gautam Adani, Sagar Adani, and Cyril Cabanes (an executive of Azure Power Global Ltd) of participating in a massive bribery scheme. The SEC alleged the scheme was designed to enable two renewable energy companies to secure a multi-billion-dollar solar energy project awarded by the Indian government.
Legal Experts Weigh In
Former Attorney General Mukul Rohatgi pointed out gaps in the U.S. indictment, emphasizing that the Adanis were not charged with the grave offenses of bribery and evidence destruction.
‘Counts 1 and 5 are critical, but neither Gautam Adani nor his nephew is named under these counts. The charges are against specific individuals, not the Adanis,’ he stated. Rohatgi noted that others named in the case were executives of the Adanis’ Canadian partner, Azure Power Global.
Separately, Supreme Court advocate Mahesh Jethmalani described the indictment as part of a ‘deep state conspiracy’ to undermine the Adani Group, claiming it reflected ‘malafide motives.'”
