Adani Green Energy Limited (AGEL) has dismissed allegations that its chairman Gautam Adani, executive director Sagar Adani, and managing director Vneet Jaain have violated the U.S. Foreign Corrupt Practices Act (FCPA). Recent reports claimed that the Adani Group was implicated in bribery accusations involving Indian state government officials, prompting this statement.
The allegations, raised in a U.S. indictment and a Securities and Exchange Commission (SEC) complaint, suggest that individuals associated with Adani Green and Azure Power Global promised or paid over ₹2,029 crore ($265 million) in bribes to secure lucrative solar energy contracts. The SEC accuses Gautam and Sagar Adani of misleading U.S. investors by falsely claiming a robust anti-corruption program while allegedly orchestrating the bribery scheme.
Clarifications from AGEL and Legal Counsel:
AGEL clarified that its executives have not faced charges related to FCPA violations and dismissed the allegations as baseless. Senior lawyer Mukul Rohatgi stressed that while Gautam and Sagar Adani are not implicated in serious charges, such as conspiracy to violate the FCPA and obstruction of justice, they are named in counts related to securities fraud and wire fraud.
Financial Market Impact:
Following AGEL’s clarification, its shares rose 3.79% to ₹933.45 on the Bombay Stock Exchange. Other Adani group entities, including Adani Enterprises and Adani Ports, also saw gains of 3.53% and 1.26%, respectively.
Ongoing Investigations:
The SEC seeks penalties and permanent injunctions against Gautam and Sagar Adani, accusing them of defrauding U.S. investors during a $750 million bond offering in 2021. The complaint states that the company raised $175 million from U.S. investors by providing allegedly false assurances about compliance measures. The investigations continue as AGEL denies the charges, asserting that specifics about the alleged bribery are missing.
The Adani Group will consult with legal experts in the U.S. to address these charges. Legal proceedings are expected to evolve as the situation develops.
