Adani bribery charge: 'Indian Energy Company' misled exchanges, claims US indictment

The US Department of Justice and Securities and Exchange Commission has alleged that an Indian renewable energy company, part of Gautam Adani's conglomerate, made false statements to Indian stock exchanges and financial institutions to conceal a bribery and fraud scheme. 

The company, referred to in court documents as the “Indian Energy Company,” operates in the renewable energy sector and is publicly traded in India. Gautam Adani served as its Chairman and Non-Executive Director, while his nephew, Sagar Adani, has been its Executive Director since 2018.

According to the indictment, on March 17, 2024, emails sent by an executive of the conglomerate to financial institutions labeled reports of a US investigation as “baseless,” “malicious,” and “defamatory.” These emails, copied to Sagar Adani, falsely claimed compliance with anti-bribery laws and denied any knowledge of the investigation.

Further, letters submitted to the National Stock Exchange of India and BSE falsely stated that the Indian Energy Company had not received notice of any investigation. The company also misrepresented its awareness of U.S. anti-corruption inquiries, dismissing them as related to a third party.

The indictment describes multiple instances of false and misleading statements to financial institutions during due diligence calls for a 2024 bond offering. Representatives of the conglomerate denied any knowledge of U.S. investigations, asserting that the company was unaware of misconduct. These statements helped the group maintain access to global capital markets while obscuring the alleged bribery scheme.

The alleged falsehoods aimed to secure continued funding for the conglomerate and its subsidiaries. These actions, the U.S. authorities claim, were central to advancing the bribery and fraud scheme. The charges include violations of the Foreign Corrupt Practices Act (FCPA), securities fraud, and conspiracy.

Adani Group’s Response

In a statement, the Adani Group denied the allegations, calling them “baseless” and reiterating its commitment to governance and regulatory compliance. “The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty,” the statement emphasised. The group assured stakeholders that it would pursue all legal avenues to challenge the charges.