In a case filed by the US Department of Justice (DOJ), the Adani group on Wednesday strongly denied allegations of bribery and violations of the US Foreign Corrupt Practices Act (FCPA) against its chairman Gautam Adani, his nephew Sagar Adani and key officer Vineet Jain. The corporation dismissed recent reports “incorrect” and clarified that chairman Gautam Adani, Sagar Adani and Vineet Jain have not been charged under the FCPA.
In a stock change filing, Adani Green Energy Ltd, the company at the centre of the allegations, said, “Gautam Adani, Sagar Adani and Vineet Jain have not been charged with any violation of the FCPA in the counts set forth in the indictment of the US DOJ or the civil complaint of the US SEC”.
The company added, the three defendants are charged with securities fraud conspiracy, wire fraud conspiracy, and securities fraud conspiracy, all of which entail possible financial penalties.
Unfounded claims of bribery
The executives are charged in the indictment with participating in a scheme to bribe Indian officials with USD 265 million in order to get solar electricity contracts that are expected to yield USD 2 billion in profit over a 20-year period. The Adani group, on the other hand, has flatly disputed these claims and declared that it will take all necessary legal actions to defend itself.
The filing made it clear that no number of fines and penalties is specified in the indictment. The company stated, “Although the complaint prays for an order directing the defendants to pay civil monetary penalties, it does not quantify the amount”.
Mukul Rohatgi, Mahesh Jethmalani’s joint presser
Speaking to media, Former Indian Attorney General Mukul Rohatgi along with Rajya Sabha MP and Senior Advocate Mahesh Jethmalani claimed that the accusations lacked details and reliable evidence. Mukul Rohatgi said, “I have gone through this indictment by the US court. My assessment is that there are five charges and five counts. It is important to note that counts one and five are more important than the others, but neither in Count 1 nor in Count 5 is Mr Adani and his nephew charged”. The charges are mainly against some other people, not the Adani executives, Mukul Rohatgi noted. “Such vague allegations make it impossible to respond meaningfully”, he continued.
The senior advocate explained that these were his own legal opinions. He stated, “I am not a spokesperson for Adani group. I am a lawyer and have been appearing for the Adani group in several cases.
Mukul Rohatgi said, “Count number 1 of the indictment is against certain other persons minus the two Adanis. It includes some of their officers and one foreign person…The first allegation is that there is a conspiracy to violate the Foreign Corrupt Practices Act framed by the US Parliament. In that, the Adanis are not named, their officers may be named. There are two or three other counts relating to securities and bonds. In those three counts, the Adanis and others are named…This is a charge sheet alleging that these people, including Adanis, have bribed Indian officials in Indian entities relating to the supply and purchase of power, but I do not find a single name or a single detail in the charge sheet as to who has been bribed, in what manner has he been bribed and the official belongs to such and such department. This charge sheet is completely silent, so I don’t know how one can respond to this kind of charge sheets…”.
Mahesh Jethmalani criticised opposition parties for politicising the issue and said, “This is clearly a political tool. Having suffered a setback in the Maharashtra elections, the Congress and the INDI Alliance are using this to divert attention. They constantly focus on foreign-linked issues like Adani and Manipur, which is against the country’s interest”.
Questions over DOJ’s intentions
Mahesh Jethmalani also used former US President Donald Trump’s criticism of the DOJ to cast doubt on the timing and purpose of the agency’s activities. “The DOJ is acting with unseemly haste. The indictment appears rushed and lacks substance. This has the markings of a political hatchet job,” he remarked.
He conjectured that Gautam Adani’s public congratulations on Donald Trump’s election victory would have attracted unjustified criticism.
Adani Group’s perspective
The Adani Group restated its will to deal with the accusations in a court of law and declared, “We categorically deny the allegations and will pursue all possible legal recourse to defend ourselves”.
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