Winning Bizness Desk
Mumbai.The United States has sought assistance from the Indian government in a fraud and bribery case involving Gautam Adani and eight others. The US Securities and Exchange Commission (SEC) informed a federal court in New York that efforts are being made to serve notices to Gautam Adani and his nephew, Sagar Adani, who are currently in India. To facilitate this, the SEC has reached out to India’s Ministry of Law.
Allegations of Fraud and Bribery in Renewable Energy Contracts
The case revolves around allegations that Gautam Adani and his associates fraudulently secured renewable energy contracts in India. It is claimed that they planned to pay a $265 million (approximately ₹2,029 crore) bribe to Indian officials to obtain these contracts. The federal case was filed on October 24, 2024, in a New York court.
Accusations of Misleading US Investors
The fraud allegations are linked to Adani Green Energy Limited and another firm. It is alleged that Adani and his associates misled US investors and banks to raise funds. The funds were then reportedly intended for bribing government officials to secure contracts. According to the charges, this constitutes a violation of the US Foreign Corrupt Practices Act (FCPA). However, the US Department of Justice documents do not explicitly state that bribes were actually paid, only that there was a plan to offer them.
Case Unveiled During Court Hearing
The case came to light on November 20, 2024, during a court hearing. Following the revelations, the Adani Group denied all allegations, calling them baseless. In a statement issued on November 21, the group stated, “The allegations against the directors of Adani Green Energy Limited by the US Department of Justice and the SEC are unfounded. We categorically reject them.”
Impact on Adani’s Net Worth and Business Deals
The news had a significant financial impact, leading to a sharp decline of ₹1.02 lakh crore in Gautam Adani’s net worth. Additionally, Kenya canceled two major deals with the Adani Group, including power transmission and airport expansion projects worth ₹21,422 crore.
