Adani Green Energy Ltd (AGEL) has issued a comprehensive statement refuting claims that its key executives, Gautam Adani, Sagar Adani, and senior executive Vneet Jaain, have been charged with violating the US Foreign Corrupt Practices Act (FCPA). This clarification follows a wave of media reports suggesting otherwise, which the company has categorically termed as baseless and misleading. AGEL emphasized that the charges leveled by the US Department of Justice (DOJ) and the US Securities and Exchange Commission (SEC) are unrelated to bribery or corruption allegations under the FCPA.
The company clarified that the individuals in question have been named in three specific counts within the indictment:
- Alleged securities fraud conspiracy
- Alleged wire fraud conspiracy
- Alleged securities fraud
These counts, AGEL highlighted, do not involve bribery or any violations of the FCPA, a law akin to India’s Prevention of Corruption Act. The company asserted that the allegations pertain only to financial matters, specifically securities and bonds, and have no connection to corruption-related accusations. AGEL dismissed the media reports as speculative and intended to distort facts, adding that it was necessary to issue this clarification to prevent the spread of misinformation and to safeguard the company’s reputation.
The statement comes amid heightened scrutiny following reports that US prosecutors had indicted Gautam Adani, Sagar Adani, and others for allegedly orchestrating a plan to offer bribes amounting to ₹2,029 crore to Indian state officials between 2020 and 2024 to secure solar power contracts. Prosecutors further claimed that these facts were concealed from US banks and investors, who provided substantial funding for Adani Group’s solar energy projects. However, AGEL’s statement clarified that no specific allegations of bribery or corruption had been made against the Adani executives.
Senior advocate and former Attorney General of India Mukul Rohatgi echoed AGEL's stance, asserting that neither Gautam Adani nor Sagar Adani has been charged under the FCPA or obstruction of justice, which forms count 5 in the indictment. "There are five counts or charges in this indictment, but counts 1 and 5 are more important than the others. Gautam Adani and his nephew have not been charged with violating the FCPA, which is akin to India’s Prevention of Corruption Act, nor with obstruction of justice," Rohatgi explained. He added that while the indictment alleges that Adanis bribed Indian entities for solar power contracts, it does not specify the recipients, the mode of bribery, or the departments involved. "Such specifics are essential in a chargesheet to establish culpability, but these details are conspicuously absent here," he said.
AGEL’s statement and Rohatgi’s comments come in response to a media frenzy surrounding the case, which has triggered concerns about the potential fallout for the Adani Group. The allegations have also drawn political attention, with opposition parties demanding explanations and further investigations into the matter. However, Rohatgi criticized the media's portrayal of the charges, asserting that the reports were speculative and lacked factual grounding.
The legal challenges outlined in the US filings have prompted the Adani Group to engage with its legal advisors in the United States to determine its response and strategy. Rohatgi noted that the absence of specific bribery charges would likely form a critical part of the Adani Group’s legal defense. "When you examine the indictment closely, the allegations remain vague, and I am confident the Adani Group will explore all legal avenues to address these charges comprehensively," he said.
AGEL’s statement also reiterated the company’s commitment to maintaining transparency and compliance with legal standards in all its jurisdictions. The group emphasized that it has always adhered to the highest standards of governance and ethical conduct and will continue to cooperate with legal authorities as required.
The Adani Group's clarification aims to mitigate the potential reputational damage caused by the misleading media reports and to reassure stakeholders about its commitment to addressing the allegations in a transparent and lawful manner. By proactively addressing the issue, AGEL seeks to reinforce confidence in its operations and the integrity of its leadership amidst ongoing scrutiny.
