Adani Green Refutes Allegations of FCPA Violation by Gautam and Sagar Adani

The Adani Group has firmly denied allegations of bribery and corruption under the US Foreign Corrupt Practices Act (FCPA) against its founder Gautam Adani, his nephew Sagar Adani, and Adani Green Energy CEO Vineet Jaain. Here’s a breakdown of the situation:

Key Points from the Adani Green Statement

1. No Charges of FCPA Violation
   • Adani Green Energy Ltd. (AGEL) clarified that none of its directors, including Gautam Adani, Sagar Adani, and Vineet Jaain, are named in the FCPA-related counts of the indictment filed by the US Department of Justice (DoJ) and the US Securities and Exchange Commission (SEC).
2. Counts of the Indictment
   • The DoJ indictment includes five counts, but Adani executives are excluded from:
     • Count One: Conspiracy to Violate the FCPA (corruption and bribery charges).
     • Count Five: Conspiracy to Obstruct Justice.
   • Adani officials are instead linked to:
     • Count Two: Alleged Securities Fraud Conspiracy.
     • Count Three: Alleged Wire Fraud Conspiracy.
     • Count Four: Alleged Securities Fraud.
3. No Evidence of Bribes Paid
   • The indictment and complaint only reference discussions or promises of bribes, but provide no evidence of bribes being paid by Adani executives to Indian government officials.
4. Involvement of Azure Power Executives
   • The corruption-related allegations in Count One involve executives from Azure Power and the Canadian institutional investor CDPQ, not Adani Group officials.

Broader Context

• Market Impact: Since the indictment, the Adani Group has suffered a market capitalisation loss of nearly USD 55 billion across its 11 listed companies.
• Global Operations: The Adani Group, one of India’s largest infrastructure players, has expanded significantly into international markets, competing with US and Chinese companies in regions like Africa, Sri Lanka, Israel, and Australia.

Implications

The allegations come at a time of heightened scrutiny on the Adani Group’s operations, particularly in global markets. While the group refutes any direct link to FCPA violations, the legal proceedings surrounding securities and wire fraud conspiracy charges remain ongoing.

This controversy is critical not only for the Adani Group’s reputation but also for its international expansion plans in competitive energy and infrastructure markets.