Gautam Adani bribery charges: Adani CFO Jugeshinder Robbie Singh said that they were aware that something was afoot but came to know about the ‘specificity’ of this – the US bribery charges – only two days ago. He said that the Adani Group would make a ‘detailed comment’ once they receive the counsel’s approval.
Singh that the charges are related to one contract of Adani Green which comprises 10 per cent of the energy company’s business. The Adani Group has 11 public companies, said Singh, and none are subject to the indictment, and none have been accused of any wrongdoing.
“This specifically relates to one contract of Adani Green which is roughly 10% of overall business of Adani Green (there is a lot more precise & comprehensive detail of this which we will elaborate in an appropriate forum). 1. We became aware of the “specificity” of this 2 days ago. We were aware that something is afoot (and in Feb 2024 144a offering circular in Risk Factors we disclosed as such. This was the first public issuance of any of our portfolio companies or their subsidiaries or JV companies after our annual results of 31st March 2023). 2. @AdaniOnline has a portfolio of 11 public companies and none are subject to indictment (ie defendants in any legal proceedings in the recent DOJ lawyer filings to a court in NYC). 3. None of the issuers (ie companies in our portfolio or specific issuers that are subsidiaries of the public companies) are accused of any wrongdoing in the said legal filing,” said Singh.
He added that a lot of media reports will try to pick “unrelated items” and create a headline but they would respond in full once they review the matter in detail.
Singh’s detailed statement comes after the group, on November 21, issued a blanket statement regarding the US indictment. US prosecutors have charged Gautam Adani, his nephew Sagar Adani, and other executives of being part of a $2 billion bribery scheme. The US Securities and Exchange Commission (SEC) said that the group paid $265 million in bribes to Indian officials to secure solar energy contracts, which were projected to generate billions in profits.
Adani and his associates have also been indicted on charges of falsifying statements to secure over $3 billion in loans and bonds.
The group, in its statement earlier, had denied the allegations and called them baseless. Adani Group said that it would take all possible legal recourse.“The allegations made by the US Department of Justice and the US Securities and Exchange Commission against directors of Adani Green are baseless and denied. As stated by the US Department of Justice itself, “the charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty.” All possible legal recourse will be sought,” it said.
Meanwhile, markets regulator Securities and Exchange Board of India (SEBI) would consider stepping in on the matter of the US indictment only if cooperation is invoked under the inter-regulatory bilateral memorandum of understanding with the US SEC, a senior SEBI official said.