Adani Row: The group denied the allegations against Gautam-Sagar Adani; and said - there is no allegation of violation of FCPA in the US court

The Adani Group has completely rejected the allegations against well-known businessman and billionaire Gautam Adani and his nephew Sagar Adani. The Adani Group said on Wednesday that Gautam Adani and his nephew have not been accused of violating the US Foreign Corrupt Practices Act (FCPA) in the indictment filed by US authorities in the court in a bribery case.

Statement recorded in a stock exchange filing

Adani Green Energy Limited, surrounded by bribery allegations, said in a stock exchange filing that the reports accusing the three FCPA violations are incorrect. They have been accused of crimes punishable with monetary fines or punishment. Gautam Adani, Sagar Adani, and Vineet Jain have not been accused of any violations of the FCPA set out in the US DOJ's indictment or the US SEC's civil complaint.

Mention of these three charges

The filing said that these directors have been charged in three cases in the criminal indictment, first- conspiracy to commit alleged securities fraud, second conspiracy to commit alleged wire fraud, and third- alleged securities fraud. The Adani Group has denied all the allegations and said it will take every possible legal step to defend itself. A criminal indictment has been filed before the United States District Court for the Eastern District of New York on behalf of the Department of Justice in the US case against Gautam Adani, Sagar Adani, and Vineet Jain. The company said that nothing has been clarified in the indictment regarding any fine or penalty. That is, how much punishment is provided or how much penalty is provided? It has not been decided.

What are the allegations in the complaint?

The civil complaint alleges that the officials violated certain sections of the Securities Act of 1933 and the Securities Act of 1934 and incited Adani Green Energy Limited to violate the acts. Although the complaint seeks an order directing the defendants to pay civil monetary penalties, it does not determine the amount of the penalty.

What did US prosecutors accuse the Adani Group of?

US prosecutors have accused Gautam Adani (62), his nephew Sagar Adani, and others of paying bribes of more than $250 million to Indian government officials between 2020 and 2024 to secure solar power contracts. Adani has been accused of bribery of Rs 2,029 crore ($265 million). According to an estimate, this could potentially benefit the group by more than two billion dollars. US prosecutors alleged that all this was hidden from American banks and investors from whom the Adani Group raised billions of dollars for the project. According to claims made in some reports, arrest warrants were issued against Gautam Adani and his nephew Sagar Adani.

What did US Attorney Brian Peace say against the Adani Group?

US Attorney for the Eastern District of New York Brian Peace had said in a statement, 'The defendants hatched an elaborate conspiracy to bribe Indian government officials to secure contracts worth billions of dollars.' Gautam Adani, chairman of the Adani Group, which is involved in various businesses, his nephew and Adani Green Energy executive director Sagar Adani, and the company's former chief executive officer (CEO) Vineet Jain have been charged with securities fraud, securities fraud conspiracy, and wire fraud conspiracy. Adani has also been charged in a civil case with the US Securities and Exchange Commission. The indictment also accuses Sagar and Jain of breaking federal law.

What did the company say about the allegations against it?

Earlier also, the Adani Group had completely rejected the allegations leveled against the directors of Adani Green by the US Department of Justice and the US Securities and Exchange Commission. The company had termed all the allegations as baseless. The Adani Group had said, 'The US Department of Justice itself has said that there are allegations in the indictment and the defendants are considered innocent until proven guilty. Every possible legal recourse will be taken in the matter.'