NTI: The Adani Group has strongly refuted allegations made by the United States Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) against Gautam Adani and his nephew Sagar Adani. The group labeled the claims as “baseless” and reiterated its commitment to legal compliance and transparency.
In an official statement issued to stock exchanges, a spokesperson for the Adani Group stated, “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.”
The statement followed a request for clarification earlier today from the National Stock Exchange (NSE) regarding the allegations. The Adani Group emphasized that even the DOJ has acknowledged that the charges in the indictment are merely “allegations” and that the individuals involved “must be presumed innocent unless and until proven guilty.”
Commitment to Legal Recourse
The group assured stakeholders, partners, and employees of its intent to explore all possible legal options. “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,” the spokesperson added. “We are a law-abiding organization, fully compliant with all laws.”
Allegations by the SEC
The SEC has accused Gautam Adani, Sagar Adani, and Cyril Cabanes of orchestrating a bribery scheme to secure solar energy projects from the Indian government. According to the SEC, the alleged scheme involved promising or paying hundreds of millions of dollars in bribes to gain commitments for above-market energy purchases, benefiting Adani Green and Azure Power.
The accusations relate to Adani Green’s solar energy agreements in 2020-21, including an 8,000 MW manufacturing-linked solar tender and a power purchase agreement with the Solar Energy Corporation of India (SECI). The SEC is seeking permanent injunctions, civil penalties, and bans on serving as officers or directors for those accused. The regulatory body stressed its commitment to holding corporate leaders accountable for violations of securities laws and deceptive practices that misled US investors.
Market Repercussions
The allegations have caused significant concern in Indian financial markets, where Adani Group companies hold a substantial presence. Market analysts are closely monitoring the developments as they could have broader implications for investor sentiment and corporate governance practices in India.
The Adani Group’s strong rebuttal and assurance of legal recourse indicate its intent to defend its reputation and operations robustly. Stakeholders await further clarity as the legal process unfolds.
