Adani Group Chairman, Gautam Adani, responded to the recent fraud allegations against him by the U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC), asserting that the company remains committed to compliance. Addressing the 51st Gems and Jewellery Award in Jaipur on Saturday, Adani stated, “Every attack makes us stronger, and every obstacle becomes a stepping stone for a more resilient Adani Group.”
Adani’s comments come in the wake of the DOJ and SEC filing an indictment and civil complaint in a New York District Court against him, his nephew Sagar Adani, and Vneet Jaain, key executives of Adani Green Energy Ltd (AGEL). The charges allege securities fraud, wire fraud, and violations of SEC regulations, particularly regarding misleading statements in AGEL’s bond offering documents related to anti-bribery and anti-corruption policies.
Despite the serious nature of the accusations, Adani rejected the charges, calling them “baseless” and reaffirmed that the group would pursue legal recourse. “No one from Adani’s side has been charged with any violation or conspiracy,” Adani emphasized, pointing out that in today’s world, negative narratives often spread faster than the truth.
During his address, he further expressed his commitment to compliance, stating, “As we work through the legal process, I want to reconfirm our absolute commitment to compliance.” He also acknowledged that challenges are part of the journey, saying, “The roadblocks we face are the price of pioneering.” Adani noted that scrutiny of bold ambitions is inevitable, but it is through such scrutiny that one finds the courage to challenge the status quo.
Details of the Allegations
The U.S. prosecutors’ indictment claims that Gautam Adani, Sagar Adani, and six other executives allegedly conspired to pay $265 million in bribes to Indian officials in exchange for contracts that promised $2 billion in profits over two decades. The charges specifically cite bribes offered to secure solar power contracts in several Indian states, including Andhra Pradesh, Odisha, Tamil Nadu, Chhattisgarh, and Jammu & Kashmir, between 2021 and 2023.
Both Gautam and Sagar Adani face charges related to securities fraud, conspiracy, and wire fraud. Additionally, the SEC has filed a civil suit against them. U.S. prosecutors have issued arrest warrants for both individuals and plan to hand them to foreign law enforcement authorities.
Political Response
The allegations have sparked political debate, with the opposition accusing the ruling Bharatiya Janata Party (BJP) of protecting Adani. In response, the BJP pointed out that the states named in the indictment were governed by opposition parties, arguing that the allegations should be viewed in that context. The party also emphasized that the company would defend itself legally, with the law taking its own course.
The Adani Group is expected to release a formal statement in due course to address the charges and defend its position.
