The Adani Group on Thursday categorically denied bribery and fraud allegations levied by the United States Department of Justice (DOJ) and the US Securities and Exchange Commission (SEC) against directors of Adani Green Energy, terming the claims as "baseless."
In an official statement, the group asserted its intention to take all necessary legal measures to address the accusations.
“The allegations by the US Department of Justice and the US Securities and Exchange Commission against directors of Adani Green are baseless and denied,” the statement read.
The Adani Group stressed the presumption of innocence, a fundamental principle in legal proceedings. “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 statement added.
Reaffirming Commitment to Governance and Compliance
Addressing concerns arising from the allegations, the group reiterated its unwavering commitment to ethical practices and regulatory compliance.
“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 said.
Deferred Bond Offerings
In its first reaction following the allegations, Adani Green Energy informed stock exchanges that its subsidiaries have decided to put on hold their plans for US dollar-denominated bond offerings.
“In light of these developments, our subsidiaries have presently decided not to proceed with the proposed USD-denominated bond offerings,” the company announced.
Details of US Allegations
US prosecutors have charged prominent Adani Group executives, including its Chairman Gautam Adani, in an alleged bribery and fraud case tied to solar energy contracts. A five-count criminal indictment has been unsealed in the United States District Court for the Eastern District of New York. The indictment accuses Gautam Adani, Sagar R. Adani, and Vneet S. Jaain of conspiring to commit securities and wire fraud, as well as engaging in substantive securities fraud.
According to the U.S. Attorney’s Office for the Eastern District of New York, the charges stem from an alleged multi-billion-dollar scheme to secure funds from U.S. investors and global financial institutions based on false and misleading statements.
The indictment also implicates former executives Ranjit Gupta and Rupesh Agarwal of a renewable energy company whose securities were traded on the New York Stock Exchange. Additionally, it names Cyril Cabanes, Saurabh Agarwal, and Deepak Malhotra—former employees of a Canadian institutional investor—as co-conspirators in a scheme allegedly violating the Foreign Corrupt Practices Act (FCPA) through bribery.
Legal Implications and Industry Reactions
The charges have sent ripples across financial markets and the renewable energy sector, particularly given Adani Group’s prominent position in global green energy initiatives. Industry analysts note that the allegations, if proven, could impact the group's international operations and investor confidence.
The Adani Group’s firm stance, coupled with its deferment of bond offerings, highlights the seriousness with which it is addressing these allegations. As the case unfolds, the group’s compliance practices and governance will likely come under increased scrutiny from stakeholders and regulators alike.
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