SEC and DOJ Charge Adani for Massive Bribery Scheme in India

Indian billionaire Gautam Adani and several of his associates are facing charges from the U.S. Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) for an alleged $250 million bribery scheme. The accusations claim that Adani and his partners orchestrated this scheme to benefit their renewable energy companies, Adani Green Energy and Azure Power Global, in connection with a solar energy project awarded by the Indian government.

The SEC alleges that Adani and his associates engaged in bribery during a note offering by Adani Green, where $750 million was raised, including funds from U.S. investors. The offering materials allegedly contained false or misleading statements about anti-corruption efforts. The DOJ and SEC further claim that bribes were facilitated through FCPA violations by Cyril Cabanes and two former employees of a Canadian institution.

Sanjay Wadhwa, Acting Director of the SEC’s Division of Enforcement, highlighted the alleged deception in selling Adani Green bonds and the participation of various individuals in the bribery scheme. The whistleblower programs under the Dodd-Frank Act allow for monetary rewards for individuals who provide original information leading to successful enforcement actions, attracting whistleblowers from around the world.

The DOJ unveiled its own whistleblower award program for FCPA cases, which offers discretionary awards and raises concerns among whistleblower advocates. The recent charges against Adani and associates underscore the importance of these programs in uncovering corruption and holding individuals accountable for violating securities laws.