'Frivolent lawsuit...': Mukesh Aghi of USISPF speaks on bribery allegation against Adanis in US court

Mukesh Aghi, President & CEO, US-India Strategic Partnership Forum, on Thursday said the US Securities and Exchange Commission's case against billionaire industrialist Gautam Adani might not be a priority for the current administration under newly elected US President Donald Trump. Elaborating on his views, Aghi told Business Today that it was a 'frivolent' (sic) lawsuit by SEC, where taxpayer's money was used to file the case. 

"Let's talk about the lawsuit against Adani by SEC. The alleged crime was not committed in the US. The investors in the US didn't lose any money. It is basically a frivolent (sic) lawsuit by the SEC using taxpayers' money. In our discussion with the incoming administration, our thinking is they would say why are you wasting our money? So, from that perspective and from that issue, I think it would dissipate with time," Aghi said. 

Gautam Adani, along with his nephew Sagar Adani and six other defendants, was charged by the US Securities and Exchange Commission in connection with an alleged bribery and fraud scheme totaling $265 million. The SEC complaint alleged that Adani and his nephew were involved in organising a bribery scheme to obtain favourable energy contracts for Adani Green and Azure Power. Sagar Adani is a board executive director at Adani Green, the group's renewable energy division.

According to US prosecutors, the group reportedly paid bribes to Indian government officials to secure lucrative solar energy supply contracts, resulting in profits of $2 billion over a 20-year period. Adani and the other defendants were charged by SEC in New York for allegedly violating the Foreign Corrupt Practices Act (FCPA).

“During the alleged scheme, Adani Green raised more than $175 million from US investors, and Azure Power’s stock was traded on the New York Stock Exchange,” an official press release stated.

The Adani Group reacted to the allegations, noting: "As stated by the US Department of Justice itself, "the charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty. All possible legal recourse will be sought. The Adani Group has always upheld and is steadfastly committed to maintaining the highest standards of governance, transparency and regulatory compliance across all jurisdictions of its operations. We assure our stakeholders, partners and employees that we are a law-abiding organisation, fully compliant with all laws."