India’s Adani Group on Thursday dismissed allegations of bribery and fraud brought forward by U.S. authorities.
Gautam Adani, recognized as one of the wealthiest individuals globally, has been indicted in a federal court in New York on accusations related to an alleged bribery and fraud scheme. A representative from the Adani Group stated that the claims put forth by the U.S. Department of Justice and the U.S. Securities and Exchange Commission against the directors of Adani Green Energy are “unfounded and refuted.” Following the indictment, shares of companies within India’s Adani Group experienced a significant decline, with Adani Green Energy — the company at the heart of the allegations — falling by 17.9%.
India’s Adani Group issued a denial on Thursday regarding allegations of bribery and fraud put forth by U.S. authorities concerning the group’s chairman, Gautam Adani, characterizing all claims as “baseless.”
Following the indictment of Gautam Adani, one of the wealthiest individuals globally, in a New York federal court on charges related to an alleged bribery and fraud scheme, shares of companies within the Adani Group experienced a significant decline. Specifically, shares of Adani Green Energy, the company at the heart of the allegations, fell by 17.9%.
Adani, along with several co-defendants, is accused of having disbursed over $250 million in bribes to Indian government officials to secure solar energy supply contracts that purportedly generated profits exceeding $2 billion.
The charges against the 62-year-old chairman, his nephew Sagar Adani, and fellow executive Vneet Jaain include misleading U.S. and international investors regarding the company’s adherence to antibribery and anticorruption regulations while raising over $3 billion in capital for energy contracts.
A spokesperson for the Adani Group stated that the allegations from the U.S. Department of Justice and the U.S. Securities and Exchange Commission against the directors of Adani Green Energy are “baseless and denied.”
“The Adani Group has consistently upheld and remains firmly committed to the highest standards of governance, transparency, and regulatory compliance across all areas of its operations. We assure our stakeholders, partners, and employees that we are a law-abiding organization, fully compliant with all applicable laws,” the spokesperson conveyed in an emailed statement.
They stated that all available legal options will be pursued in response to the allegations.
On Thursday, shares of GQG Partners, an investor in Adani, plummeted by approximately 20%.
City analysts noted in a Thursday report that a prevalent concern among investors regarding the allegations is the extent of exposure that Indian lenders have to Adani Green Energy.
According to Citi, the energy firm has outstanding borrowings amounting to 630 billion Indian rupees ($7.46 million), with total charges on assets reaching 650 billion Indian rupees. The report also highlighted that lender-specific data may not accurately reflect the actual fund-based exposure.
In light of the indictment charges, Adani Green Energy has decided to abandon its plans to raise approximately $600 million through bonds denominated in U.S. dollars.
