No FCPA Violation Charge on Gautam and Sagar Adani: Group Co

Adani Group Clarifies No FCPA Violation Charges Against Gautam, Sagar Adani

In recent news, Adani Green Energy has made a statement affirming that Gautam Adani, Sagar Adani, and Vneet Jaain have not been charged with any violations of the Foreign Corrupt Practices Act (FCPA) as stated in the US Department of Justice’s (DoJ) criminal indictment or the US Securities and Exchange Commission’s (SEC) civil complaint.

The company stated in a stock exchange filing that the directors were charged with alleged securities fraud conspiracy, alleged wire fraud conspiracy, and alleged securities fraud, refuting media reports that suggested they were charged with breaching FCPA.

Former Attorney General Mukul Rohatgi also clarified in a news conference that neither Gautam nor Sagar Adani were charged in two crucial counts. Rohatgi emphasized that his views were personal and not representative of the Adani group, but he highlighted that the charges against the directors did not include violations of the FCPA.

Rohatgi explained that the penalties for the charges the directors are facing are less severe than those for corruption charges. The Adani group has strongly denied all allegations and stated its intention to pursue legal remedies.

Since the indictment, the Adani group reported a significant loss of nearly $55 billion in its market capitalization across its 11 listed companies. This loss underscores the impact of such allegations on the company’s financial standing and reputation.

It’s important to note that the US criminal indictment did not specify any fine or penalty for the Adani group. However, the three directors face monetary penalties under the civil complaint, with the exact amount yet to be determined.

In conclusion, the Adani group’s stance is that neither Gautam Adani nor his nephew, Sagar Adani, were charged with breaching the FCPA. The company remains committed to addressing these legal challenges and protecting its interests.