New York/New Delhi. Industrialist Gautam Adani has been accused by U.S.
prosecutors of paying ₹2200 crore in bribes to Indian officials in exchange for
favorable terms in securing solar energy contracts in India. Adani, India’s
second-richest individual, faces charges of bribery and securities fraud in two
separate cases filed by U.S. authorities.
A criminal indictment was filed in a
New York court by the U.S. Department of Justice (DOJ) against Gautam Adani,
his nephew Sagar Adani, and seven others. They are accused of bribing
unidentified state officials in Andhra Pradesh and other states to secure
high-cost solar energy purchase agreements, potentially earning profits
exceeding $2 billion over 20 years.
According to the lawsuit, New
Delhi-based Azure Power was also allegedly involved in the bribery
conspiracy. Additionally, the U.S. Securities and Exchange Commission (SEC) has
accused Gautam and Sagar Adani, along with an Azure Power executive, of
violating federal securities laws' anti-fraud provisions.
Following these allegations, Adani
Green Energy Limited, the group’s renewable energy arm, canceled its $600
million bond issuance. The issuance had been oversubscribed threefold but was
withdrawn after the charges surfaced.
The company informed stock exchanges
that the U.S. DOJ and SEC filed a criminal indictment and a civil complaint
against Gautam and Sagar Adani in the Eastern District of New York. The DOJ
also issued a criminal indictment against board member Vineet Jain. Consequently,
the group’s subsidiaries decided not to proceed with proposed USD-denominated
bond offerings.
The allegations caused a significant
drop in the stock prices of Adani Group’s 10 listed companies, with their
combined market capitalization plummeting by approximately $30 billion (₹2.5
lakh crore).
While the charges are currently
allegations, U.S. authorities claim the bribes were concealed from American
banks and investors, who provided billions in funding for Adani’s 12GW solar
energy projects.
New Delhi: The Adani Group on Thursday dismissed the bribery
allegations made by U.S. authorities as baseless and stated that the group has
consistently adhered to all legal regulations. The group plans to explore all
legal options to address the matter.
An Adani Group spokesperson said,
“The allegations against Adani Green’s directors by the U.S. DOJ and SEC are
baseless, and we categorically reject them.” The spokesperson also cited the
DOJ’s statement that indictments are mere "allegations" and defendants
should be presumed innocent until proven guilty.
Call
for Investigation: Rahul Gandhi
Senior Congress leader Rahul Gandhi
called for an investigation into corruption allegations involving the Adani
Group. “Wherever corruption exists, there must be an investigation. But it
should start with Adani. Arrest Adani, interrogate him, and then hold everyone
involved accountable,” he said.
Adani
Group Shares Plummet
The allegations have caused a steep
decline in the stock prices of Adani Group companies listed on the Bombay Stock
Exchange (BSE). The market capitalization of the group’s 10 listed entities
fell by approximately $30 billion (₹2.5 lakh crore).
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