November 27, 2024
New Delhi, India
Adani Group Denies Allegations
The Adani Group has denied bribery allegations under the Foreign Corrupt Practices Act (FCPA) against its founder Gautam Adani, nephew Sagar Adani, and Adani Green Energy CEO Vneet Jaain. In a November 27 stock exchange filing, the group clarified that the charges filed by the U.S. Department of Justice (DOJ) and Securities and Exchange Commission (SEC) do not include violations of the FCPA or obstruction of justice.
Key Allegations
- Charges Filed:
- Securities Fraud Conspiracy
- Wire Fraud Conspiracy
- Securities Fraud
- DOJ Allegations:
- Claims of a $265 million bribery scheme to secure solar energy contracts generating $2 billion in profits.
- Accusations of misrepresenting anti-bribery policies to U.S. investors.
- No FCPA Violations:
- Gautam Adani and executives are not implicated in bribery or obstruction of justice, according to the Adani Group.
Financial & Market Repercussions
The allegations have caused severe financial and reputational damage to the Adani Group:
- Market Cap Decline: Over $54 billion wiped out since the charges surfaced.
- Credit Downgrades: Agencies like Moody’s have revised their outlook on Adani companies to negative.
- Green Bond Withdrawal: Adani Green Energy canceled a $600 million green bond offering amid market volatility.
Global Fallout
The charges have strained Adani’s global business ties:
- TotalEnergies: Paused new investments in Adani firms.
- US DFC: Reevaluating a $550 million loan for a Sri Lankan port project.
- GQG Partners & Jefferies: Key investors reassessing their association with the group.
Adani Group’s Defense
Calling the allegations politically motivated, the Adani Group insists the charges are baseless and plans to contest them legally. It emphasized that any penalties for securities violations would likely be monetary rather than criminal.
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