Group Denies Widespread Wrongdoing, Claims Legal Filing Only Involves Adani Green Energy
In response to the recent U.S. bribery indictment against Indian billionaire Gautam Adani, the Chief Financial Officer (CFO) of Adani Group, Jugeshinder Singh, clarified that the charges are related to a single contract of Adani Green Energy, which represents only about 10% of the company’s overall business. The CFO also emphasized that none of the other companies in the Adani Group are implicated in the case.
On Wednesday, U.S. prosecutors charged Adani and seven other individuals with fraud in connection with an alleged $265 million bribery scheme intended to secure power-supply deals in India. The indictment claims that Indian officials were bribed, and it suggests that the Adani Group misled investors about its adherence to antibribery regulations.
Allegations Pertaining to Adani Green Energy Contract
Singh reiterated that the allegations focus solely on a contract with Adani Green Energy, one of the group’s renewable energy arms, and that none of the 11 publicly listed companies within the conglomerate are named or accused of any wrongdoing in the indictment. “We are aware that the charges are specific to one contract, which makes up a small fraction of Adani Green’s overall business,” Singh explained.
Adani Group, one of the largest conglomerates in India with diverse operations spanning multiple sectors, has denied all claims made in the indictment, calling them “baseless.” Singh further stressed that the legal challenges currently faced by Adani Green Energy were unrelated to any other part of the conglomerate’s extensive global operations.
Impact of U.S. Indictment and Legal Fallout
The charges have significantly affected the Adani Group’s financial standing, with the group’s shares experiencing sharp declines following the news. Several international banks have reportedly paused or reconsidered their financial support for Adani’s future projects, and Kenya has recently canceled two multi-billion-dollar deals with the conglomerate.
Singh noted that the group first became aware of the details surrounding the U.S. indictment only two days prior, and the company had already disclosed potential legal concerns to investors earlier this year in its $750 million bond offering. This offering, which raised about $175 million from U.S.-based financial institutions, included information on the group’s ongoing legal matters.
U.S. Charges Raise Concerns Over Corporate Governance and Transparency
The U.S. charges also include accusations of misleading investors in the Adani Green Energy bond offering, specifically regarding the company’s corporate governance practices. The indictment claims that the offering misrepresented the company’s commitment to maintaining transparency and compliance with legal and ethical standards.
In particular, the charges highlight the role of Sagar Adani, the director of Adani Green Energy and the millennial heir to the Adani Group, who is alleged to have tracked bribe payments worth hundreds of millions of dollars on his mobile phone. Singh, however, emphasized that the company would provide more detailed commentary once it has received legal clearance, as the matter remains under investigation in the courts.
