Days after the US indictment of Gautam Adani and other individuals, Adani Group CFO Jugeshinder Singh has said that the bribery indictment pertains to a single contract at Adani Green Energy. According to a Reuters report, the Adani Group CFO said that the indictment is linked to one contract which comprises some 10% of its business.
The CFO clarified that amongst the conglomerate’s eleven publicly listed companies, none are subject to the indictment.
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He emphasised that neither the portfolio companies nor any subsidiaries of the public entities face accusations of improper conduct.
The Adani Group CFO further stated that the organisation would provide a comprehensive response after thoroughly examining the details presented in the legal documentation.
The United States Department of Justice (DoJ) has filed charges against industrialist Gautam Adani, his nephew Sagar Adani, and six additional individuals, alleging their involvement in a massive corruption scheme involving thousands of crores of rupees.
The charges include defrauding American investors and impeding investigations, creating significant legal and reputation-related challenges for one of India’s prominent business groups.
A New York district court and the Securities and Exchange Commission (SEC) have issued both criminal and civil charges, which could result in substantial monetary penalties and profit recovery, though settlement options remain available. The investigation included participation from the Federal Bureau of Investigation (FBI).
Following these developments, Adani Green cancelled its $600 million bond offering, marking the second cancellation in consecutive months. This occurred amidst declining group shares and bonds, resulting in substantial market value losses as investors assessed the potential consequences.
“The co-conspirators through Gautam Adani, Sagar Adani, Vneet Jaain and others had offered and promised Indian government officials approximately ₹2,029 crore in bribes in exchange for Indian government officials causing the state electricity distribution companies to execute PSAs (power sale agreements),” the DoJ said.
The American prosecutors have presented five charges against the Adani Group, which had secured funding from US investors, and NYSE-listed Azure Power, supported by Canadian investor CDPQ and an Adani Group associate. The charges include conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and obstruct justice for Azure executives, whilst the Adanis face securities and wire fraud charges.
The Adani Group has rejected all allegations and indicated its intention to seek legal recourse.