Adani Group CFO dismisses indictment in US

In the wake of the US indictment against Gautam Adani and several others, Jugeshinder Singh, the CFO of Adani Group, has stated that the bribery charges are related to a single contract within Adani Green Energy, which represents approximately 10% of the company's overall business. 

Singh clarified that none of the eleven publicly traded companies under the Adani umbrella are implicated in the indictment. He stressed that neither the portfolio companies nor any subsidiaries associated with these public entities are facing allegations of misconduct.

Additionally, the CFO indicated that the organisation plans to issue a detailed response after a careful review of the legal documents involved.

The US Department of Justice has brought charges against Gautam Adani, his nephew Sagar Adani, and six other individuals, accusing them of participating in a large-scale corruption scheme involving significant sums of money.

The allegations include defrauding American investors and obstructing investigations, posing serious legal and reputational challenges for one of India's leading business conglomerates.

Both a New York district court and the Securities and Exchange Commission (SEC) have filed criminal and civil charges, which could lead to considerable financial penalties and recovery of profits, although there are options for settlement. The investigation has also involved the Federal Bureau of Investigation (FBI).

In light of these events, Adani Green has cancelled its $600 million bond offering, marking the second such cancellation in as many months. This decision comes amid a decline in the group's shares and bonds, leading to significant losses in market value as investors evaluate the potential implications.

The allegation

"The co-conspirators through Gautam Adani, Sagar Adani, Vneet Jaain and others had offered and promised Indian government officials approximately ₹2,029 crore in bribes in exchange for Indian government officials causing the state electricity distribution companies to execute PSAs (power sale agreements)," the DoJ said.

American prosecutors have filed five charges against the Adani Group, which obtained funding from US investors, as well as against Azure Power, listed on the NYSE and backed by Canadian investor CDPQ along with an associate of the Adani Group. The charges encompass conspiracy to breach the Foreign Corrupt Practices Act (FCPA) and obstruction of justice related to Azure executives, while the Adani Group is facing accusations of securities and wire fraud.

The Adani Group has denied all allegations and expressed its plan to pursue legal action.