Billionaire industrialist Gautam Adani on Saturday directly addressed the allegations of fraud brought against him and other executives of Adani Green Energy by the United States Department of Justice and the Securities and Exchange Commission, blaming the press for what he described as “incorrect and reckless reporting” on the matter, reported India Today.
“As most of you would have read, less than two weeks back, we faced a set of allegations from the US about compliance practices at Adani Green Energy,” Adani said at an event in Jaipur. “This is not the first time we have faced such challenges. What I can tell you is that every attack makes us stronger, and every obstacle becomes a stepping stone for a more resilient Adani Group.”
The statement came a day after the Indian government said it viewed the developments relating to the indictment of Adani and others linked to the Adani Group in the United States as a legal matter involving private companies, individuals and the US Department of Justice.
The indictment accuses Adani, his nephew Sagar Adani and senior executive Vneet Jaain of conspiracy to commit securities fraud, wire fraud and breaches of the United States’ securities regulations. It alleges that Adani Green Energy executives misled investors about the company's compliance with anti-bribery laws in bond offerings to secure international funding.
Prosecutors also claimed that Adani and his associates conspired to pay $265 million, or Rs 2,200 crore, in bribes to Indian officials between 2021 and 2023 to secure solar power contracts expected to yield $2 billion in profits. Officials from Andhra Pradesh, Odisha, Tamil Nadu, Chhattisgarh and Jammu and Kashmir were allegedly bribed.
“Despite a lot of vested reporting, no one from Adani’s side has been charged with any violation of the Foreign Corrupt Practices Act or conspiracy to obstruct justice,” Adani said on Saturday. “Yet, in today’s world, negativity spreads faster than facts.”
The Foreign Corrupt Practices Act is a United States law that prohibits the payment of bribes to foreign officials to further business deals.
While the indictment document outlines conspiracy to obstruct justice and Foreign Corrupt Practices Act violations, Adani and his executives were not charged on these counts. The indictment document does, however, name Adani, Sagar and Cyril Cabanes of Azure Power Global in what it describes as a “massive bribery scheme”.
The Adani Group has denied the charges, calling them “baseless”.
A company statement had accused the press of misinterpreting the indictment and noted that no evidence of actual bribe payments to government officials was presented in US Department of Justice’s filings.
The charges came nearly two years after the American short-seller Hindenburg Research accused the Adani Group of pulling off the “largest con in corporate history” through accounting fraud, improper use of tax havens and money laundering.
Adani on Saturday referred to the Hindenburg report as a politically motivated attack amplified by vested media interests.
Also read:
What does US law say about Adani’s indictment – and can he be charged in India?
Adani US indictment: The Indian solar deals for which Rs 2,029 crore was allegedly paid in bribes
Gautam Adani met ex-Andhra CM Jagan Reddy to offer $200 million bribe, alleges US securities panel
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