MUMBAI: In a significant development, Gautam Adani, the billionaire founder of the Adani Group, and his nephew Sagar Adani have been named in a multi-million dollar bribery and corruption case by the United States Securities and Exchange Commission (SEC). The case, which revolves around allegations of bribery to secure contracts for Adani Green Energy’s solar projects, has brought to light a serious controversy surrounding the business empire.
The Alleged Bribery Scheme
The SEC alleges that Gautam Adani and his associates paid bribes totaling $265 million to Indian government officials between 2014 and 2021. These bribes were supposedly paid to secure lucrative solar energy contracts for Adani Green Energy, a key subsidiary of the Adani Group. This includes a specific offering in September 2021, in which Adani Green raised $750 million from global investors, including $175 million from US investors. The SEC claims that despite these ongoing bribery activities, Adani misrepresented the company’s anti-corruption efforts to the US investors, which constitutes a violation of the US Foreign Corrupt Practices Act (FCPA).
The US SEC’s case alleges a direct violation of trust, with the Adani Group accused of deceiving investors regarding its ethical standards and governance practices. The company has vehemently denied these allegations, asserting that they will take all necessary legal recourse to defend their actions. A statement from the Adani Group emphasized that all accused are presumed innocent unless proven guilty.
Key Individuals Charged
The bribery case has implicated several high-ranking individuals within the Adani Group and their associated companies. Apart from Gautam and Sagar Adani, the list of accused includes:
- Gautam Adani – The 62-year-old founder and chairman of the Adani Group, one of India’s most influential business tycoons. Adani has been listed as one of the wealthiest individuals globally, with an estimated net worth of $85 billion as of 2024.
- Sagar Adani – Gautam Adani’s nephew and the Executive Director at Adani Green Energy. He is credited with expanding the company’s solar and wind energy portfolio since joining in 2015.
- Cyril Cabanes – A dual French-Australian citizen based in Singapore, Cabanes is a former director at Azure Power Global, another company involved in the scheme. He is also charged under the FCPA.
- Vneet Jaain – CEO and Managing Director of Adani Green Energy, Jaain has been with the company for over 15 years, leading significant projects in the energy sector.
- Ranjit Gupta – Former CEO of Azure Power Global, another key figure in the case.
- Rupesh Agarwal – Former Chief Strategy and Commercial Officer at Azure Power Global.
- Saurabh Agarwal and Deepak Malhotra – Two other individuals named in the charges, who have been associated with energy projects linked to the Adani Group.
These individuals have been accused of facilitating the bribery operations in exchange for securing government contracts for solar energy projects under the Adani Group umbrella.
Adani Group’s Response
In a formal response, the Adani Group has strongly denied the allegations. The group has reiterated its commitment to maintaining the highest standards of transparency, governance, and regulatory compliance across all of its operations. It also pointed out that the charges against the accused are allegations, and they will seek to clear their names through legal proceedings.
The SEC’s charges come amid growing scrutiny over the Adani Group’s business practices, particularly following the Hindenburg report in early 2023, which raised concerns about stock manipulation and corporate governance within the conglomerate.
Conclusion
The ongoing legal battle between the US SEC and the Adani Group marks a critical moment for one of India’s largest business entities. As the case unfolds, it could have far-reaching implications for the Adani Group’s international reputation, as well as its financial standing in global markets.
WEB TEAM, C6N
