Adani Group denies the US bribery allegations against Gautam Adani and nephew Sagar Adani

Adani Group Refutes US Bribery Allegations Against Gautam Adani and Sagar Adani

Written by: Supriya Kadu

Edited by: Pinky Deshmukh

Last Updated: November 27, 2024

Summary: Adani Group says there was a misunderstanding about the US charges leading to “incorrect reporting.”

Adani Group today announced that the US Department of Justice has cleared Adani Group chairman Gautam Adani, his nephew Sagar Adani, and senior officer Vneet Jaain of any bribery allegations. Adani Green, a subsidiary of Adani Group, referred to media reporting on this as "incorrect" in a recent stock exchange filing.

They released a statement, saying, “Gautam Adani, Sagar Adani, and Vneet Jaain have not been charged with any violation of the FCPA in the counts outlined in the indictment of the US DOJ or the civil complaint of the US SEC.”

The Department of Justice claimed that although the indictment contains five charges, the three directors, Gautam Adani, Sagar Adani, and Vneet Jaain, are not included in the first and fifth accusations, which are conspiracy to violate the FCPA and conspiracy to obstruct justice.

The three people in question, however, are charged with securities fraud, wire fraud conspiracy, and securities fraud conspiracy, all of which involve monetary penalties.

A "flawed understanding" of the US indictment by both international and Indian media outlets resulted in "incorrect and reckless reporting."

The indictment has charged the three accused of taking part in the plot to bribe the Indian authorities with $256 million (USD) to get solar power contracts, which will bring in $2 billion (USD) in profits over 20 years. The Adani group has categorically dismissed the allegations and is taking all the legal measures to defend themselves.

During a press conference, senior lawyer Mukul Rohatgi said that no details of the brided entity have been mentioned in the chargesheet.

These US charges caused Adani Group to lose over Adani Group's 11 listed companies have witnessed a decline in market valuation of around $55 billion. It said, “Since the intimation of the US DoJ (Department of Justice) indictment, the group has suffered a loss of near $55 billion in its market capitalisation across its 11 listed companies.”