Adani Group Denies Bribery Allegations, Rejects FCPA Violations in US Case

The Adani Group on Wednesday strongly rejected allegations of bribery and violations of the US Foreign Corrupt Practices Act (FCPA) against its chairman, Gautam Adani, his nephew, Sagar Adani, and senior executive, Vneet Jaain. These claims stem from a case filed by the US Department of Justice (DOJ), which accused the trio of participating in a scheme to bribe Indian officials in exchange for solar energy contracts. However, the Adani Group has clarified that none of the executives are charged under the FCPA, dismissing the claims as “inaccurate.”

In a statement to the stock exchange, Adani Green Energy Ltd, which is central to the allegations, stated that "Gautam Adani, Sagar Adani, and Vneet Jaain have not been charged with any violation of the FCPA in the counts set forth in the indictment of the US DOJ or the civil complaint of the US SEC." The company further detailed that the individuals face charges related to conspiracy involving securities fraud and wire fraud, which could result in financial penalties. However, the indictment specifically excludes Gautam Adani, Sagar Adani, and Vneet Jaain from two key counts – conspiracy to violate the FCPA and conspiracy to obstruct justice.

The DOJ's indictment claims that the Adani executives were involved in paying bribes totaling USD 265 million to secure solar power contracts expected to generate USD 2 billion in profits over two decades. Despite this, the Adani Group has categorically denied the allegations, stating it would take all necessary legal actions to defend its position. The filing also noted that while the US SEC's civil complaint seeks monetary penalties, it does not specify any amounts. "Although the complaint prays for an order directing the defendants to pay civil monetary penalties, it does not quantify the amount," the company said.

In response to the allegations, former Attorney General of India, Mukul Rohatgi, and senior advocate Mahesh Jethmalani addressed the media, arguing that the charges lacked credible evidence. Rohatgi emphasized that the first and fifth counts in the indictment, which involve conspiracy to violate the FCPA and conspiracy to obstruct justice, do not name the Adanis or their close associates. "I have gone through this indictment... My assessment is that there are five charges or five counts, but neither in Count 1 nor in Count 5 is Mr. Adani or his nephew charged,” said Rohtagi.

Rohatgi further clarified that the charges predominantly target other individuals, not the Adani executives. He criticized the vague nature of the charges, saying, “Such vague allegations make it impossible to respond meaningfully.” He also highlighted the lack of specific details in the charge sheet, stating, "I do not find a single name or a single detail in the charge sheet as to who has been bribed, in what manner, or which department the official belongs to."

Mahesh Jethmalani, for his part, accused opposition parties of politicizing the matter, suggesting that they were using the allegations to divert attention from domestic issues. He said, “This is clearly a political tool... The Congress and the INDI Alliance are using this to divert attention, constantly focusing on foreign-linked issues like Adani and Manipur.” Jethmalani also questioned the timing and motivations behind the DOJ’s actions, speculating that Gautam Adani’s public congratulations to former US President Donald Trump might have triggered the scrutiny. "The DOJ is acting with unseemly haste. The indictment appears rushed and lacks substance," he said, adding that it had the "markings of a political hatchet job."