Billionaire Gautam Adani. File.
| Photo Credit: Reuters

Adani Group founder Gautam Adani responded for the first time on Saturday (November 30, 2024) to allegations by U.S. authorities that he was part of a $265 million bribery scheme, saying that his ports-to-power conglomerate was committed to world class regulatory compliance.

Gautam Adani indictment: In-depth coverage

“Less than two weeks back, we faced a set of allegations from the U.S. about compliance practices at Adani Green Energy. This is not the first time we have faced such challenges,” Mr. Adani said in a live-streamed speech at an awards ceremony.

“What I can tell you is that every attack makes us stronger and every obstacle becomes a stepping stone for a more resilient Adani Group,” Mr. Adani said in Jaipur.

Adani Group has denied the U.S. allegations, describing them as “baseless” and vowing to seek “all possible legal recourse”.

“In today’s world, negativity spreads faster than facts, and as we work through the legal process, I want to re-confirm our absolute commitment to world class regulatory compliance,” Mr. Adani said in his speech, without giving further details.

Adani Group’s finance chief on Friday rejected the allegations, while the Indian government said it has not received any U.S. request regarding the case.

Gautam Adani. Files
| Photo Credit: Reuters

The U.S. Department of Justice (DoJ) has issued a five-count criminal indictment of Gautam Adani, chairman of the Adani Group, and several of his business associates. The charges include promising more than $250 million in bribes to Indian government officials to secure solar energy contracts, conspiracies to commit securities and wire fraud, and orchestrating “a multi-billion dollar scheme” to defraud U.S. investors and global financial institutions by giving “false and misleading statements”. The indictment was unsealed by the U.S. Attorney’s Office for the Eastern District of New York late on November 20, 2024.

Gautam Adani U.S. indictment LIVE updates: Adani Group denies ‘baseless’ allegations; Rahul Gandhi demands businessman’s arrest

In a parallel move, the U.S. Securities and Exchange Commission (SEC) has also charged Gautam Adani and Sagar Adani (Gautam’s nephew and head of Adani Green Energy), along with Cyril Cabanes, a top executive of Azure Power Global Limited, (a New Delhi-headquartered renewable energy company that used to be listed on the New York Stock Exchange), with a massive bribery scheme involving Adani Green and Azure Power.

While the Department of Justice’s indictment constitutes a criminal case, the SEC’s is a civil complaint and if proved, could result in a “permanent injunction, a civil penalty, and an officer and director bar”. The SEC’s complaints were filed in the U.S. District Court for the Eastern District of New York.

Gautam Adani indicted in US: What do we know so far?

Reacting to these developments, Adani Green Energy Limited has withdrawn its proposed $600 million U.S. dollar denominated bond offering. Shares of Adani Group companies lost about $28 billion in market value in morning trade on Thursday (November 21, 2024.)

What does the indictment say?

The indictment concerns the actions of the defendants between 2020 and 2024. The defendants are Gautam Adani, Sagar Adani, Executive Director of Adani Green Energy, Vneet S. Jaain, former CEO of Adani Green Energy, Ranjit Gupta, former CEO of Azure Power Global, Cyril Cabanes, a former managing director at CDPQ, a Canadian pension fund which is also a majority stockholder of Azure Power, Saurabh Agarwal, former managing director of CDPQ India, Deepak Malhotra, former executive of CDPQ, and Rupesh Agarwal, former CEO of Azure Power.

Under the U.S.’s Foreign Corrupt Practices Act, 1977 (FCPA), it is unlawful to make payments to foreign government officials in a bid to obtain or retain business. It is also a criminal offence to raise money by misleading investors about key corporate governance practices, which this case concerns compliance with the FCPA. Further, it is unlawful to obstruct federal investigations by giving false information and destroying evidence such as electronic communications. It is also a separate offence to hide the authorisation of bribery practices in company annual reports. The defendants have been charged with offences on all these counts.

Allegations and scandals against the Adani Group: A timeline

According to the indictment, starting in 2020, the defendants authorised and collaborated on a scheme to pay more than $250 million in bribes to Indian government officials in order to secure solar power purchase contracts for Adani Green Energy and Azure Power from the Solar Energy Corporation of India (SECI), a company of the Union Ministry of New and Renewable Energy whose mission is to increase the use of renewable-energy in India.

The U.S. DoJ indictment has alleged that the Adanis resorted to a bribery scheme because SECI was unable to find buyers among State distribution companies (discoms) for the Adanis’ solar power, whose price was above market rates. But many State discoms did subsequently sign sale agreements with SECI to buy the Adanis’ more expensive renewable power.

The indictment notes that “following the promise of bribes to Indian government officials — between July 2021 and February 2022 — electricity distribution companies for the States and regions of Odisha, Jammu and Kashmir, Tamil Nadu, Chhattisgarh and Andhra Pradesh entered into PSAs [Power Sale Agreements) with SECI”. Further, “Andhra Pradesh’s electricity distribution companies entered into a PSA with SECI on or about December 1, 2021” after which the State agreed to purchase approximately seven gigawatts of solar power, by far the largest amount of any Indian State or region.”

And then, to fund the operations of Adani Green Energy and its subsidiaries, the defendants committed securities fraud and wire fraud (any fraud that uses electronic communications through the U.S.) by hiding their FCPA violations to obtain bank loans worth more than $2 billion from international financial institutions and U.S.-based asset management companies. Also, by “offering more than $1 billion in securities” that were marketed and sold to investors in the U.S., Adani Green Energy and its directors “relied on the United States’ financial system to perpetrate this fraudulent scheme by….causing wires to be sent and received that passed through the United States.”

Adani indictment in U.S. vindicates demand for JPC probe, says Congress

The Adani Group has denied the allegations of the U.S. Department of Justice and the SEC, terming them “baseless”. In a statement, a spokesperson for the conglomerate said, “As stated by the U.S. 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.”

Gautam Adani. Files
| Photo Credit: Reuters

The U.S. Department of Justice (DoJ) has issued a five-count criminal indictment of Gautam Adani, chairman of the Adani Group, and several of his business associates. The charges include promising more than $250 million in bribes to Indian government officials to secure solar energy contracts, conspiracies to commit securities and wire fraud, and orchestrating “a multi-billion dollar scheme” to defraud U.S. investors and global financial institutions by giving “false and misleading statements”. The indictment was unsealed by the U.S. Attorney’s Office for the Eastern District of New York late on November 20, 2024.

Gautam Adani U.S. indictment LIVE updates: Adani Group denies ‘baseless’ allegations; Rahul Gandhi demands businessman’s arrest

In a parallel move, the U.S. Securities and Exchange Commission (SEC) has also charged Gautam Adani and Sagar Adani (Gautam’s nephew and head of Adani Green Energy), along with Cyril Cabanes, a top executive of Azure Power Global Limited, (a New Delhi-headquartered renewable energy company that used to be listed on the New York Stock Exchange), with a massive bribery scheme involving Adani Green and Azure Power.

While the Department of Justice’s indictment constitutes a criminal case, the SEC’s is a civil complaint and if proved, could result in a “permanent injunction, a civil penalty, and an officer and director bar”. The SEC’s complaints were filed in the U.S. District Court for the Eastern District of New York.

Reacting to these developments, Adani Green Energy Limited has withdrawn its proposed $600 million U.S. dollar denominated bond offering. Shares of Adani Group companies lost about $28 billion in market value in morning trade on Thursday (November 21, 2024.)

What does the indictment say?

The indictment concerns the actions of the defendants between 2020 and 2024. The defendants are Gautam Adani, Sagar Adani, Executive Director of Adani Green Energy, Vneet S. Jaain, former CEO of Adani Green Energy, Ranjit Gupta, former CEO of Azure Power Global, Cyril Cabanes, a former managing director at CDPQ, a Canadian pension fund which is also a majority stockholder of Azure Power, Saurabh Agarwal, former managing director of CDPQ India, Deepak Malhotra, former executive of CDPQ, and Rupesh Agarwal, former CEO of Azure Power.

Under the U.S.’s Foreign Corrupt Practices Act, 1977 (FCPA), it is unlawful to make payments to foreign government officials in a bid to obtain or retain business. It is also a criminal offence to raise money by misleading investors about key corporate governance practices, which this case concerns compliance with the FCPA. Further, it is unlawful to obstruct federal investigations by giving false information and destroying evidence such as electronic communications. It is also a separate offence to hide the authorisation of bribery practices in company annual reports. The defendants have been charged with offences on all these counts.

Allegations and scandals against the Adani Group: A timeline

According to the indictment, starting in 2020, the defendants authorised and collaborated on a scheme to pay more than $250 million in bribes to Indian government officials in order to secure solar power purchase contracts for Adani Green Energy and Azure Power from the Solar Energy Corporation of India (SECI), a company of the Union Ministry of New and Renewable Energy whose mission is to increase the use of renewable-energy in India.

The U.S. DoJ indictment has alleged that the Adanis resorted to a bribery scheme because SECI was unable to find buyers among State distribution companies (discoms) for the Adanis’ solar power, whose price was above market rates. But many State discoms did subsequently sign sale agreements with SECI to buy the Adanis’ more expensive renewable power.

The indictment notes that “following the promise of bribes to Indian government officials — between July 2021 and February 2022 — electricity distribution companies for the States and regions of Odisha, Jammu and Kashmir, Tamil Nadu, Chhattisgarh and Andhra Pradesh entered into PSAs [Power Sale Agreements) with SECI”. Further, “Andhra Pradesh’s electricity distribution companies entered into a PSA with SECI on or about December 1, 2021” after which the State agreed to purchase approximately seven gigawatts of solar power, by far the largest amount of any Indian State or region.”

And then, to fund the operations of Adani Green Energy and its subsidiaries, the defendants committed securities fraud and wire fraud (any fraud that uses electronic communications through the U.S.) by hiding their FCPA violations to obtain bank loans worth more than $2 billion from international financial institutions and U.S.-based asset management companies. Also, by “offering more than $1 billion in securities” that were marketed and sold to investors in the U.S., Adani Green Energy and its directors “relied on the United States’ financial system to perpetrate this fraudulent scheme by….causing wires to be sent and received that passed through the United States.”

Adani indictment in U.S. vindicates demand for JPC probe, says Congress

The Adani Group has denied the allegations of the U.S. Department of Justice and the SEC, terming them “baseless”. In a statement, a spokesperson for the conglomerate said, “As stated by the U.S. 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.”

Adani Corporate House in Ahmedabad. File.
| Photo Credit: AP

Hours after a statement from the New York Eastern District court indicted Gautam Adani and the other board of directors of Adani group of companies of criminal and civil irregularities, the Adani group denied the allegations against Adani Green calling them baseless.

Also Read:Gautam Adani U.S. indictment LIVE updates

The apples to airport conglomerate said that they were innocent until proven guilty, referring to a line in the U.S. Department of Justice (DoJ) statement and added that they were ready to resort to “all possible legal recourse.”

“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” the statement read.

Adani group’s response assumes significance as they had withdrawn their $600 million worth bonds issue in the U.S. hours before the statement was released.

Earlier in the day the DoJ in its statement indicted Gautam Adani, Sagar Adani and other board of directors in company on five counts ranging from civil case like securities fraud to criminal case like wire fraud, corrupt practices and obstruction of justice. The stocks of Adani’s seven listed companies in the bourses crashed about 10% on open, with Adani Energy Solutions falling the most.

Adani Enterprises Ltd stocks were at ₹2317 a piece, 18% lower than the previous close on the National Stock Exchange at around 2 PM on November 21.

File picture of BJP IT cell head Amit Malviya
| Photo Credit: PTI

The BJP on Thursday (November 21, 2024) targeted the Congress over its attack on the Central government after U.S. prosecutors charged industrialist Gautam Advani with bribery and fraud, saying all the States mentioned in the indictment were at that time ruled by non-BJP parties.

BJP’s IT department head Amit Malviya also questioned the timing of the development, as it came just before the start of Parliament session and Donald Trump’s impending presidency.

FOLLOW: Gautam Adani U.S. indictment LIVE updates

This raises several questions, he said. “That the Congress is willing to be a prop in the hands of George Soros and his cabal speaks volumes,” Mr. Malviya said on X in reply to Congress leader Jairam Ramesh’s claim that the indictment vindicates the Congress’s demand for a Joint Parliamentary Committee (JPC) investigation into the various “Modani scams”.

Citing from the U.S. federal prosecutors’s indictment, Mr. Malviya said the States where government officials were paid bribes allegedly by the Adani Group were Odisha, Tamil Nadu, Chhattisgarh and Andhra Pradesh between July 2021 and February 2022.

He told Mr. Ramesh, “All the states mentioned here were Opposition-ruled during that time. So, before you pontificate, answer on the bribes the Congress and its allies accepted,” he said.

While Odisha and Andhra Pradesh were then ruled by the BJD and the YSR Congress, two regional parties unaffiliated to either the ruling or the opposition alliance at that time, the Congress ally DMK was and remains in power in Tamil Nadu.The Congress was in power in Chhattisgarh.

“Don’t get excited”

Taking a swipe at Mr. Ramesh, he said it is always good to read before one reacts and added that the U.S. document cited by the senior Congress leader said the charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty.

An Indian court, the BJP leader said, can similarly on legitimate grounds accuse American firms of bribing U.S. government officials to deny access to Indian markets.

“Should we then allow law to take its course and the concerned corporate to defend or plant ourselves in domestic politics of a foreign country,” he said, asking the Congress to not get needlessly excited.

Congress allegations

The Congress, especially the Leader of Opposition in Lok Sabha Rahul Gandhi, has constantly alleged proximity between the government led by Prime Minister Narendra Modi and Adani, claiming that the port-to-energy conglomerate has received undue favours from the BJP dispensation.

Mr. Adani has dismissed such suggestions. The BJP, too, has denied the allegations and noted that the Adani Group has invested heavily in many Opposition-ruled states as well.

Federal U.S. prosecutors have charged Mr. Adani, his nephew Sagar Adani and some other group officials for paying over $250 millions in bribe to Indian officials in exchange for favourable terms for solar power contracts.

U.S. prosecutors charged Mr. Adani, 62, his nephew Sagar and other defendants for paying over $250 million in bribes between 2020 and 2024 to Indian government officials to win solar energy contracts on terms that could potentially bring in more than $2 billion in profit.

The Adani group did not immediately respond to requests for comments.

Gautam Adani indicted by the U.S. Securities and Exchange Commission (SEC) with fraud, bribery, and corruption for allegedly defrauding American investors and bribing officials. File photo
| Photo Credit: AP

Gautam Adani along with seven others that includes his nephew Sagar Adani have been indicted by the U.S. Securities and Exchange Commission (SEC) with fraud, bribery, and corruption for allegedly defrauding American investors and bribing officials. As per the SEC, the bribery scheme was orchestrated to enable renewable energy companies Adani Green and Azure Power to capitalise on a multi-billion-dollar solar energy project awarded by the Indian government.

Gautam Adani U.S. indictment LIVE updates

A total amount of $265 million was to be paid in bribes to Indian government officials to obtain contracts that were expected to yield a profit of approximately $2 billion over the period of 20 years while developing India’s largest solar power plant project. Vneet Jaain, former CEO of Adani Green Energy had allegedly raised more than $3 billion in loans and bonds as well.

Here are the names of the seven defendants other than Gautam Adani:

Sagar S. Adani

Sagar Adani is a nephew of Gautam Adani and was the Executive Director Adani Green Energy, the firm against whom the US SEO has initiated a probe. The US court has charged Sagar of trying to bribe officials of various state-owned power distribution companies in order to get contracts to supply solar power to the region. The court accused Sagar of using his mobile phone to track specific details of the bribes offered and promised to government officials.

Vineet Jain aka Vneet S. Jaain

Jaain was the Chief Executive Officer of the Adani Green Energy from July 2020 through May 2023 and the Managing Director of the firm’s Board of Directors from July 2020 through the present. A five-count criminal indictment was unsealed against him in the federal court for allegedly committing securities and wire fraud.

Ranjit Gupta

Ranjit Gupta was the CEO of the U.S. Issuer and the CEO and Managing Director of the U.S. Issuer’s Subsidiary from approximately July 2019 through April 2022. He was charged with conspiring to violate the Foreign Corrupt Practices Act, a US anti-bribery law.

Rupesh Agarwal

Rupesh Agarwal, a former consultant for the U.S. Issuer and its subsidiary, has also been accused of conspiring to violate the Foreign Corrupt Practices Act, a U.S. anti-bribery law.

Cyril Cabanes

Cyril Cabanes, who holds a dual citizenship of Australia and France residing in Singapore, was employed by the Canadian investment firm Caisse de Dépôt et Placement du Québec from February 2016 to October 2023. The Canadian pension fund was an investor in Adani subsidiary. He also served as a Non-Executive Director on the company’s boards from January 2017 to October 2023. Cabanes has been charged with conspiring to violate the Foreign Corrupt Practices Act, a U.S. anti-bribery law.

Saurabh Agarwal

Saurabh Agarwal was also hired by Caisse de Dépôt et Placement du Québec and he reported to Cyril Cabanes, one of the defendants in the case from May 2017 to July 2023. He has been charged for corrupt practices and bribery.

Deepak Malhotra

Deepak Malhotra was another Indian hired by the Canadian investor company Caisse de Dépôt et Placement du Québec from September 2018 through October 2023 who also served as the Non-Executive Director of the Boards of Directors of the U.S. Issuer and the U.S. Issuer’s Subsidiary during the same period. He also faces charges of corruption and bribery in the indictment by the US Securities and Exchange Commission.

Following the indictment, a New York judge has issued a warrant for Mr . Adani’s arrest, media reports said. According to ABC News, quoting court records, the arrest warrant will be given to foreign law enforcement authorities.

Last year, Hindenburg Research, a U.S.-based financial research firm accused Adani and his company of “brazen stock manipulation” and “accounting fraud.” The Adani Group called the claims “a malicious combination of selective misinformation and stale, baseless and discredited allegations.”

Hindenburg is known as a short-seller, a Wall Street term for traders that essentially bet that prices of certain stocks will fall, and it had made such investments in relation to the Adani Group. The company’s stock plunged as a result and dipped again in August when Hindenburg levied more corruption allegations.