US Authorities Indict Gautam Adani And Executives In Bribery Case, No FCPA Violations Alleged

Billionaire Gautam Adani, his nephew Sagar Adani, and senior executive Vineet Jain have been indicted by the US Department of Justice (DOJ) for alleged involvement in a $265 million bribery scheme. However, the Adani family members are not accused of violating the US Foreign Corrupt Practices Act (FCPA), as clarified by the Adani Group on Wednesday.

Indictment Details

According to the indictment, the alleged scheme involved paying bribes to Indian officials to secure solar power supply contracts, with projected profits of $2 billion over 20 years. The charges filed by the DOJ in the United States District Court for the Eastern District of New York include:

1. Securities fraud conspiracy.
2. Wire fraud conspiracy.
3. Securities fraud.

Clarification on FCPA Allegations

Adani Green Energy Ltd, the Adani Group entity central to the bribery allegations, issued a statement addressing media reports. The company clarified that the accusations do not involve violations of the FCPA. Instead, the charges are subject to monetary fines or penalties under securities and wire fraud laws.

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“The directors—Gautam Adani, Sagar Adani, and Vineet Jain—have not been accused of FCPA violations in either the DOJ’s indictment or the US Securities and Exchange Commission’s (SEC) civil complaint,” the filing stated.

Adani Group Denies Allegations

The Adani Group has categorically denied the allegations and pledged to pursue all available legal remedies. In its stock exchange filing, the company reiterated its position, stating, “No amount of penalty or fine has been specified in the indictment.”

The SEC’s civil complaint alleges that the accused violated provisions of the Securities Act of 1933 and the Securities Act of 1934. It also claims the defendants aided and abetted Adani Green Energy Ltd in breaching these Acts. While the complaint seeks monetary penalties, it does not specify any amounts.

Adani Group’s Financial Strength Asserted

In response to these developments, the Adani Group has underscored its financial stability. It emphasized that growth is achievable without external debt, asserting the group’s resilience and commitment to its operations.

Legal Proceedings and Next Steps

The indictment further marks a significant development in the investigation into alleged bribery within Adani Green Energy’s operations. However, the absence of FCPA-related charges provides some relief to the Adani family as they prepare to defend against the criminal and civil allegations.