Gautam Adani Cleared of Bribery Charges: Adani Group
Embattled billionaire Gautam Adani and his associates are facing charges in the US, but not for bribery. According to Adani Green Energy Ltd (AGEL), they are being charged with securities and wire fraud. The case involves allegations of a USD 265 million bribery scheme to secure solar power contracts in India.
The charges against Gautam Adani, his nephew Sagar, and Vneet Jaain do not include violations of the US Foreign Corrupt Practices Act. Instead, they are facing securities fraud conspiracy, wire fraud conspiracy, and securities fraud charges. While serious, these charges typically carry monetary fines, unlike bribery charges.
The Adani Group has vehemently denied all allegations and plans to defend itself legally. The group has clarified that none of its firms trade in the US, but some, like AGEL, have American investors. Despite the legal challenges, the group asserts that the individuals in question have not been charged with FCPA violations.
Legal experts supporting Adani’s defense have pointed out that the indictment does not mention anyone being paid a bribe. Charges related to securities and bonds, not bribery, have been brought against the executives involved. The indictment seems to focus on allegations of bribery to secure contracts, misrepresentation of anti-bribery practices, and obstruction of investigations.
The fallout from this legal battle has been significant for Adani Group companies, which have lost billions in market capitalization. International credit rating agencies Moody’s and Fitch have downgraded their outlook on several Adani firms due to anticipated capital costs and funding challenges. Some consequences include canceled debt raisings and halted investments from international partners like TotalEnergies.
In light of these legal challenges, it is clear that this case is complex and continues to evolve. Adani and his associates are facing serious charges, and the implications of this legal battle will be significant for the Adani Group and its stakeholders. Stay tuned for updates as this story unfolds.
