Adani Group refutes US bribery charges against Gautam Adani, Sagar Adani and other executives

Gautam Adani, his nephew Sagar Adani and senior executive Vneet Jaain have been cleared of any bribery charges, according to the US Department of Justice (DoJ). The Justice Department indictment, which attracted widespread media attention, did not name the three Adani officials on any corruption or bribery charges.

In response to the growing controversy over corruption allegations, Adani Green Energy Limited (AGEL) issued a clarification statement on November 27, stating that the US Department of Justice (DoJ) outlined that against Gautam Adani, Sagar Sagar Adani and senior executive Vneet Jaain), are “incorrect”.

In a stock exchange filing, Adani Green Energy Ltd (AGEL) has strongly refuted claims made by multiple media outlets that its executives allegedly violated the US Foreign Corrupt Practices Act (FCPA).

“Media reports that Messrs. Gautam Adani, Sagar Adani and Vineet Jain have been charged with violating the U.S. Foreign Corrupt Practices Act (FCPA) are incorrect,” the document said.

The statement went on to clarify that these officials were not named in the Justice Department’s indictment or in any civil lawsuit filed by the U.S. Securities and Exchange Commission (SEC). The five-count indictment does not name any Adani executive with conspiring to violate the FCPA or obstruct justice.

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Instead, the corruption-related charges in the DOJ indictment focus on executives at Azure Power and its largest shareholder, CDPQ (Canadian Institutional Investor). The indictment names Ranjit Gupta, Cyril Cabanes and other individuals associated with Azure Power.

Still, some media reports have misinterpreted the indictment, falsely claiming that Adani executives were charged on all five counts.

Charges against Adani executives

While Adani executives were not charged with bribery or corruption, they were charged with three counts involving securities fraud and wire fraud conspiracy. These charges are separate from the bribery charges and do not involve the FCPA.

No evidence of bribery

The U.S. Justice Department’s indictment does not provide any direct evidence that Adani executives paid bribes to Indian government officials. The charges are based on allegations of promises or discussions of bribes, without confirmation of actual payments.

“These allegations are based solely on hearsay from former Azure Power and CDPQ employees, making the DOJ’s case ethically and legally untenable,” one legal expert said.

The impact of false reporting

The flawed reporting and ongoing legal proceedings have resulted in significant financial and reputational consequences for the Adani Group. International projects were canceled and the group’s 11 listed companies lost nearly $55 billion in market value.

Response from Adani Group CFO

Adani Group chief financial officer Jugeshinder Robbie Singh said in a statement that despite the challenges, truth will prevail. “The truth is starting to emerge. To all of you who are patient and value integrity and honesty, thank you for your support. We are fighting an uphill battle against a well-funded force of blatant lies, unethical and irresponsible reporting. However, the truth will eventually emerge.”