Adani Group clears its executives of bribery charges, slams false media reports

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

Adani Group Chairman Gautam Adani, his nephew Sagar Adani, and senior executive Vneet Jaain have been cleared of any bribery charges, according to the latest filing from Adani Green Energy Ltd. (AGEL) with the stock exchanges. The filing responds to recent media reports that claimed the executives were involved in bribery and corruption charges under the US Foreign Corrupt Practices Act (FCPA).

AGEL’s filing rejected the media claims as “incorrect,” specifically addressing reports that suggested the three Adani executives were charged with violations of the FCPA. “Mr. Gautam Adani, Mr. Sagar Adani, and Mr. Vneet Jaain have not been charged with any violation of the FCPA in the indictment or civil complaint by the U.S. Department of Justice (DoJ) or the U.S. Securities and Exchange Commission (SEC),” the company said in its statement.

The filing also clarified that the U.S. DoJ’s indictment, which includes five counts, does not name the Adani executives in the first count—“Conspiracy to Violate the FCPA”—nor in the fifth count—“Conspiracy to Obstruct Justice.” The indictment’s bribery charges, which stem from alleged misconduct by executives at Azure Power, a renewable energy company, do not involve any Adani officials. The only individuals named in these charges are Ranjit Gupta, Cyril Cabanes, Saurabh Agarwal, Deepak Malhotra, and Rupesh Agarwal from Azure Power and its largest shareholder, the Canadian institutional investor CDPQ.

Adani Group’s filing also criticized the media’s misinterpretation of the indictment, which led to widespread false reporting that Adani executives were implicated in all five counts. “Such statements are incorrect and reckless,” AGEL stated. The charges against the Adani officials pertain to three counts—alleged securities fraud conspiracy, alleged wire fraud conspiracy, and alleged securities fraud—but these charges do not involve bribery or corruption.

The indictment and complaint are primarily based on claims that bribes were “promised or discussed,” but the US authorities have not presented evidence of actual bribes being paid by Adani executives to Indian government officials. These claims are largely based on testimony from former Azure Power and CDPQ employees, making the case against Adani executives legally and morally questionable, according to AGEL.

The group also expressed frustration with the fallout from these allegations, noting that the media reports and the US legal action have caused significant damage to the Adani Group, including project cancellations, a drop in its market capitalization, and increased scrutiny from investors and strategic partners. The conglomerate, which has significant operations in energy, logistics, and infrastructure globally, has seen its market value shrink by nearly $55 billion since the news of the DoJ indictment broke.

Despite the challenges, Adani Group remains a dominant force in India’s infrastructure sector, with expanding operations in international markets such as Africa, Bangladesh, Sri Lanka, Israel, and Australia. The company continues to compete against major global players, including US and Chinese firms, in various regions.

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