Adani Group Clarifies No FCPA Charges Against Gautam and Sagar Adani Amid US Bribery Case
- Posted on November 27, 2024
- News
- By Arijit Dutta
- 71 Views
The Adani Group clarified that Gautam and Sagar Adani have not been charged with violations of the US FCPA in a bribery case. The US Department of Justice's indictment alleges securities and wire fraud conspiracy linked to solar contracts. The company denies the allegations and plans to pursue legal defenses.
The Adani Group has issued a statement clarifying that Gautam Adani, the group's chairman, and his nephew, Sagar Adani, have not been charged with violations of the US Foreign Corrupt Practices Act (FCPA) in connection with a bribery case. The clarification came after the US Department of Justice filed a criminal indictment accusing the two, along with key executive Vneet Jaain, of orchestrating a scheme to bribe Indian officials with USD 265 million in exchange for solar energy contracts.
According to the indictment, these actions were part of a broader plan to secure contracts for solar electricity supply that could potentially generate USD 2 billion in profits over the next two decades. Despite the seriousness of the charges, Adani Green Energy, a key subsidiary involved in the case, clarified that the three individuals were not charged under the FCPA, contradicting earlier reports. The charges they face include securities fraud conspiracy, wire fraud conspiracy, and securities fraud.
The Adani Group expressed its intent to fight the accusations, confirming that it would pursue legal recourse to defend its executives. The filing also emphasized that the indictment did not specify the quantum of any penalties. Additionally, a civil complaint from the US Securities and Exchange Commission (SEC) alleges violations of the Securities Act, but the amount of potential civil penalties remains unspecified.
Also Read: Adani Group Faces $55 Billion Loss Following US Corruption Indictment
The legal case continues to unfold, with the Adani Group vigorously denying all allegations, and it remains to be seen how the case will develop in the coming months.
