Adani Group denies US fraud and bribery allegations

The Adani Group has strongly denied allegations of fraud and bribery brought by the United States Securities and Exchange Commission (SEC) and the US Department of Justice (DoJ). The conglomerate described the accusations as “baseless” and reaffirmed its commitment to defending itself through legal means.

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The case has gained global attention, sending shares of Adani Group companies tumbling by up to 20 per cent when markets opened on Thursday. The dramatic drop underscores the financial and reputational impact of the charges.

Congress and Opposition Leader Rahul Gandhi conducted a press conference asking for strict actions against the group saying that retail investors’ money is at stake. He also asked the government to remove the SEBI chairman and advocated the appointment of a neutral person to ensure transparency and efficiency of the organisation.

Adani Group Responds

In a statement, a spokesperson for the Adani Group dismissed the allegations, emphasising that they were unproven claims. “The defendants are presumed innocent unless and until proven guilty,” the spokesperson highlighted, referencing remarks by the DoJ.

The company reiterated its commitment to transparency and compliance. “The Adani Group has always upheld the highest standards of governance, transparency, and regulatory compliance across all jurisdictions of its operations,” the spokesperson said. The group assured its stakeholders, employees, and partners of its law-abiding status and vowed to explore all legal options to counter the allegations.

Allegations of Bribery

The SEC indictment accuses Gautam Adani, the group’s founder, and six other individuals of conspiring to pay $265 million in bribes to Indian government officials. These alleged payments were reportedly made to secure contracts for Adani Green Energy, the renewable energy arm of the conglomerate.

The charges further claim that these bribes were part of a scheme linked to a September 2021 bond offering by Adani Green Energy. The bond raised $750 million, including $175 million from US investors.

Misleading Investors

The SEC has also alleged that materials provided to US investors during the bond offering were misleading. According to the complaint, Adani Green Energy falsely presented its anti-corruption measures and misrepresented details about the offering, leading to misinformation for investors.

Market Impact

The allegations have sparked a sharp sell-off in Adani Group stocks, with investors reacting strongly to the accusations. Analysts suggest that the case could have long-term implications for the group’s international credibility and its ability to raise funds in global markets.

Legal Battle Ahead

The Adani Group has pledged to challenge the charges and defend its reputation. “All possible legal recourse will be sought,” the company said, underlining its determination to counter the claims.

The allegations come at a time when the group is under scrutiny from global investors and regulators. The outcome of the legal proceedings could have far-reaching consequences for the conglomerate and its operations.

A High-Stakes Controversy

As the case unfolds, it continues to attract global attention. With accusations involving significant figures and vast sums of money, the legal battle is set to be closely watched by stakeholders around the world.