Gautam Adani-led Adani Group has responded to the bribery and fraud allegations by the US Department of Justice and the US Securities and Exchange Commission, calling the charges “baseless”.
The investigation centers on Adani Green Energy Ltd. and another organisation’s contract to provide 12 gigawatts of solar power to the Indian government. US prosecutors assert that Adani and his associates manipulated records to attract billions in Wall Street investments whilst coordinating payments or planning to pay over $250 million in bribes to Indian government officials for securing energy contracts.
Following the news of the indictment, Adani Group stocks crashed up to 20% with the overall market capitalization of the group companies plunging by Rs 2.25 lakh crore. However, in its first reaction to the charges, Adani Group has denied the allegations.
Adani Group’s First Reaction to Gautam Adani Indictment
Below is the full text of the Adani Group spokesperson’s comment on the allegations:
The allegations made by the US Department of Justice and the US Securities and Exchange Commission against directors of Adani Green are baseless and denied.
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.
Gautam Adani, the founder and chairman of Adani Group, faces indictment in the US along with seven other executives. The charges, presented in a Brooklyn federal court, include securities fraud, wire fraud, and Foreign Corrupt Practices Act violations. The defendants allegedly engaged in a bribery scheme for securing solar energy contracts in India whilst misleading international investors to obtain more than $3 billion.
Also Read | Gautam Adani charged by US over alleged $250 million bribe plot
The United States District Court for the Eastern District of New York has unsealed a five-count criminal indictment, as reported by Reuters, citing US prosecutors.
The US justice department website details that between 2020 and 2024, the accused allegedly disbursed over $250 million in bribes to Indian government officials. These actions were purportedly aimed at securing energy contracts expected to yield more than $2 billion in post-tax profits over twenty years.
The U.S. Attorney’s Office, Eastern District of New York, states: “A five-count criminal indictment was unsealed in federal court charging Gautam Adani, Sagar R. Adani, and Vneet S. Jaain, with conspiracies to commit securities and wire fraud and substantive securities fraud for their roles in a multi-billion-dollar scheme to obtain funds from U.S. investors and global financial institutions on the basis of false and misleading statements.”
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The investigation revealed Gautam Adani’s direct involvement through personal meetings with Indian officials regarding the alleged bribery scheme. The evidence includes electronic communications, detailed spreadsheets, and photographic documentation of bribe records. Sagar Adani reportedly documented bribe specifics via mobile phone, whilst Vneet S. Jaain recorded bribe payment summaries.