MUMBAI: In a significant legal victory for the Adani group, the Bombay High Court has discharged Adani Group Chairman Gautam Adani and Managing Director Rajesh Adani from a case alleging market regulation violations amounting to nearly Rs388 crore.
This decision concludes a legal battle that commenced in 2012.
Background
The controversy began in 2012 when the Serious Fraud Investigation Office (SFIO) accused Adani Enterprises Ltd (AEL) and its promoters of criminal conspiracy and financial misconduct.
A Mumbai magistrate’s court dismissed these charges in 2014 due to insufficient evidence. However, the SFIO appealed, leading to a 2019 Sessions Court decision to reinstate the case. The Adanis subsequently approached the Bombay High Court, which ruled in their favour, effectively clearing them of all charges.
Recent developments
In November 2024, US prosecutors unsealed a five-count indictment against Gautam Adani, his nephew Sagar Adani, and other senior executives.
The charges include conspiracy to violate the Foreign Corrupt Practices Act, securities fraud, and wire fraud, alleging a scheme involving over $250 million in bribes to Indian government officials to secure lucrative solar energy contracts.
The indictment also accuses the defendants of misleading US investors by concealing these activities.
The Adani Group has denied these allegations, labeling them as baseless. The company emphasised its commitment to compliance and transparency, asserting that it would vigorously defend against the charges.
Impact
The US indictment has exerted pressure on the Adani Group’s financial standing. Credit rating agencies, including Fitch, assigned a negative outlook to Adani Energy Solutions Ltd, citing concerns over corporate governance and potential risks arising from ongoing US investigations.
The Adani Group continues to navigate these legal challenges while maintaining its operations across various sectors, including energy, infrastructure, and logistics.
