Adani’s Nephew Not Charged Under US Foreign Corrupt Practices Act
The Adani Group has clarified that Gautam Adani and his nephew Sagar have not been charged with any violation of the US Foreign Corrupt Practices Act (FCPA). Instead, they are facing charges under securities fraud that involve monetary penalties.
Gautam Adani, the founder chairman of the Adani Group, along with Sagar Adani and another key executive, Vneet Jaain, have been accused by the US Department of Justice of being part of an alleged scheme to pay $265 million in bribes to Indian officials to secure contracts for the supply of solar electricity. These contracts were said to generate a profit of $2 billion over a 20-year period.
Adani Green Energy Ltd, the company at the center of these allegations, has stated that reports claiming the three individuals have been charged with FCPA violations are incorrect. The charges they are facing are related to securities fraud, wire fraud conspiracy, and securities fraud, all of which carry monetary fines or penalties.
The Adani Group has staunchly denied all accusations as baseless and has declared its intention to pursue all available legal avenues to defend itself. The company has emphasized that while DoJ and SEC have issued criminal indictments and civil complaints against the individuals, the exact amount of any penalties or fines has not been specified.
The US DoJ has alleged that senior executives of Adani Green, Azure Power, and CDPQ took part in a bribery scheme to secure solar energy contracts with the Indian government. This resulted in misrepresentations of anti-bribery practices to US-based investors and financial institutions. However, the Adani executives have not been charged specifically with FCPA violations or conspiracy to obstruct justice.
The Adani Group has faced significant financial repercussions following the US indictment, with substantial declines in market capitalization and credit rating downgrades from agencies like Moody’s and Fitch. International partnerships and investments with firms like TotalEnergies and the US International Development Finance Corporation have also been impacted by the legal developments.
In light of these events, various partners and investors with ties to the Adani Group have begun to reassess their relationships and investments. From financial setbacks to cautious pauses in new investments, the implications of the bribery allegations are increasingly reverberating throughout the business community.
