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Billionaire Gautam Adani and his nephew Sagar Adani have not been charged with violating the US Foreign Corrupt Practices Act (FCPA) in connection with a bribery case, the Adani Group clarified on Wednesday. In a statement filed with the stock exchange, Adani Green Energy Ltd dismissed media reports alleging such charges as incorrect, according to PTI reports.
The indictment filed by the US Department of Justice (DOJ) accuses Gautam Adani, Sagar Adani, and another executive, Vneet Jaain, of participating in an alleged scheme to pay $265 million in bribes to Indian officials. The bribes were reportedly aimed at securing contracts for the supply of solar electricity, which would allegedly generate $2 billion in profit over a 20-year period.
The Adani Group, a conglomerate spanning sectors from ports to energy, categorically denied the allegations. "Gautam Adani, Sagar Adani, and Vneet Jaain have not been charged with any violations of the FCPA in the counts specified in the US DOJ indictment or the civil complaint by the US Securities and Exchange Commission (SEC)," the company stated.
According to PTI, the executives face three charges in the criminal indictment: securities fraud conspiracy, wire fraud conspiracy, and securities fraud. These charges, the company clarified, carry the possibility of monetary fines or penalties but are unrelated to the FCPA.
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The case has been filed before the United States District Court for the Eastern District of New York. The Adani Group said the indictment does not specify the quantum of any potential fines or penalties.
The accompanying civil complaint alleges that the executives violated sections of the Securities Act of 1933 and the Securities Exchange Act of 1934, as well as aided Adani Green Energy Ltd in violating these regulations. The complaint seeks an order for civil monetary penalties but does not quantify the amount, according to the company.
The Adani Group reiterated its commitment to defending itself through all available legal channels. "We strongly deny these allegations and will pursue every possible legal recourse to contest them," the company emphasised.
As per PTI reports, the clarification comes amid significant scrutiny of the allegations, with the Adani Group maintaining its stance against any wrongdoing. The matter continues to unfold as legal proceedings advance in the United States.
(With inputs from PTI)
