MUMBAI: Adani Green Energy Ltd (AGEL) on Wednesday accused certain media outlets of “making a mountain out of a molehill” after unsubstantiated reports suggested that its chairman, Gautam Adani, and two other executives had been charged under the US Foreign Corrupt Practices Act (FCPA).
The company categorically denied these allegations, calling them baseless and not reflective of the charges outlined by US authorities.
AGEL’s statement comes in response to reports alleging that Gautam Adani, executive director Sagar Adani, and managing director Vneet Jaain were implicated in offering Rs2,029 crore ($265 million) in bribes to Indian state officials.
This purported scheme, aimed at securing lucrative solar energy contracts, has been described in a criminal indictment by US prosecutors.
Baseless allegations
In its statement, AGEL said, “Gautam Adani, Sagar Adani, and Vneet Jaain have not been charged with any violation of the Foreign Corrupt Practices Act (FCPA) in the counts set forth in the indictment of the US DOJ or the civil complaint of the US Securities and Exchange Commission (SEC).”
Senior advocate Mukul Rohatgi, who has represented the Adani Group in the past, also criticised the lack of merit in the charges.
He noted that neither Gautam Adani nor Sagar Adani was named in the two most serious counts of the indictment: conspiracy to violate the FCPA and conspiracy to obstruct justice.
“Despite the noise around this issue, no tangible evidence or specific names have been provided. This is a textbook case of making a mountain out of a molehill,” said Rohatgi.
Charges lack specificity
The three counts where Gautam Adani, Sagar Adani, and Vneet Jaain are named involve securities fraud conspiracy and wire fraud conspiracy, which are far less severe than the FCPA and obstruction-related charges.
Rohatgi emphasised the lack of details in the indictment, stating, “There is no mention of who was bribed, how much was paid, or how the bribes were facilitated. Without such specifics, these allegations lack credibility.”
Clarifications
Following the company’s clarification, AGEL shares surged on the BSE. Adani Enterprises and Adani Ports and Special Economic Zone (APSEZ) also recorded gains, reflecting investor confidence despite the controversy.
The indictment primarily names individuals associated with Azure Power and the Canadian pension fund Caisse de dépôt et placement du Québec (CPDQ) in the more serious charges, while the Adani executives are only linked to less critical allegations.
Clean slate
The Adani Group strongly reaffirmed its stance, calling the reports baseless and accusing detractors of attempting to malign its reputation.
“We are committed to transparency and compliance with all laws. These unfounded allegations will not deter us from our mission,” AGEL stated.
In a world where rumors can snowball into controversies, the Adani Group appears keen to ensure this particular molehill remains just that. With legal experts like Rohatgi backing its position, the conglomerate is confident in its ability to weather the storm.
