The Adani Group on Wednesday strongly refuted allegations of bribery and violations of the US Foreign Corrupt Practices Act (FCPA) involving its chairman Gautam Adani, his nephew Sagar Adani, and key executive Vneet Jaain. The charges were part of an indictment filed by the US Department of Justice (DOJ) and a civil complaint by the US Securities and Exchange Commission (SEC). The group dismissed the claims as “incorrect” and without basis.
In a filing with the stock exchange, Adani Green Energy Ltd clarified, “Gautam Adani, Sagar Adani, and Vneet Jaain have not been charged with any violation of the FCPA in the counts set forth in the indictment of the US DOJ or the civil complaint of the US SEC.” The company reiterated that the allegations pertain to securities fraud conspiracy, wire fraud conspiracy, and securities fraud, which could attract monetary penalties, but not FCPA violations.
Allegations and Legal Defense
The indictment alleges that Adani executives were involved in a scheme to pay $265 million in bribes to Indian officials for securing solar electricity contracts estimated to generate $2 billion in profits over two decades. However, the Adani Group categorically denied these claims, stating it would pursue all legal avenues to defend itself.
The company also emphasized that no specific quantum of fines or penalties has been outlined. “Although the complaint prays for an order directing the defendants to pay civil monetary penalties, it does not quantify the amount,” the statement read.
Former Attorney General of India Mukul Rohatgi, along with senior advocate and Rajya Sabha MP Mahesh Jethmalani, defended the Adani executives, asserting that the allegations lacked credible evidence. Rohatgi stated, “I have gone through the 54-page indictment. Neither Gautam Adani nor Sagar Adani is named in the two most critical counts — count one and count five. There are no specifics on who was allegedly bribed or how.”
Political Angle
Jethmalani accused opposition parties of exploiting the issue for political gain. “This is clearly a political tool. The Congress and INDI Alliance, reeling from a setback in the Maharashtra elections, are using this to divert attention. They constantly focus on foreign-linked issues like Adani and Manipur, which is against the country’s interest,” he said.
He further criticized the lack of substantive details in the charges, describing them as vague and speculative. Rohatgi echoed this sentiment, highlighting that the allegations were directed at certain other individuals and lacked specificity regarding the Adani executives.
Moving Forward
The Adani Group remains firm in its stance, stating its intention to challenge the charges through appropriate legal means. The company emphasized that the claims were an attempt to tarnish its reputation without substantial grounds. Meanwhile, political debates surrounding the allegations continue to escalate, with opposition parties calling for greater scrutiny into the group’s dealings.