New Delhi. Gautam Adani and seven other people have been accused of bribery and fraud in America. Adani is accused of paying a bribe of 250 million dollars to get a contract to one of his companies in America and hiding the matter. On this entire incident, Eastern District of New York Attorney Brian Peace has said that his office is committed to root out corruption from the international market. He said that we are working to protect investors from people who want to enrich themselves at the cost of the credibility of our financial markets. Peace stressed that the Criminal Division will continue to take vigorous action against all corrupt, deceptive, and disruptive conduct that violates U.S. laws, no matter where in the world they occur.
After the strict attitude of the US Justice Department, the troubles of Gautam Adani and Adani Group are bound to increase. The statement of attorney Brian Peace is indicating that they are not going to give up chasing Adani easily. As soon as the news of the lawsuit in America came, the shares of Adani Group fell by 20 percent. Not only this, despite the huge fall in the shares of Adani’s listed companies after the Hindenburg report, American firm GQG Partners, which had invested in Adani Group, has now also said that it will review its investment in Adani Group.
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the allegations are serious
In this case, apart from Gautam Adani, his nephew Sagar Adani, Vineet S Jain, Ranjit Gupta, Cyril Cabenis, Saurabh Aggarwal, Deepak Malhotra and Rupesh Aggarwal have been accused of bribery. “Between 2020 and 2024, senior executives of an Indian renewable energy company, which was a portfolio company of an Indian group and listed on a US exchange, colluded with a Canadian institutional investor,” the order from the Eastern District of New York said. Conspired to bribe Indian government officials. The purpose of this conspiracy was to secure profitable solar energy supply contracts with Indian government entities.”
Attorney Breon Peace of the Eastern District of New York, Deputy Assistant Attorney General Lisa H. Miller of the Justice Department’s Criminal Division, and FBI Assistant Director James E. Dennehy announced the charges. Peace said, “The accused hatched a complex conspiracy to bribe Indian government officials to obtain contracts worth billions of dollars. “Gautam Adani, Sagar Adani and Vineeta Jain attempted to conceal the bribery scheme while raising capital from American and international investors.” Apart from this, the US Securities and Exchange Commission (SEC) has also filed a separate civil case against Gautam Adani, Sagar Adani and Kabanes on charges of fraud and corruption. The SEC said Adani Green Energy misrepresented investors that the company had a strong anti-corruption policy and that management was not involved in bribery.
Violated these American laws
US prosecutors say that Gautam Adani and others have violated the Foreign Corrupt Practices Act (FCPA) and the Foreign Extortion Prevention Act (FEPA). Prosecutors have filed five charges:
- Conspiracy to Violate the FCPA: It is alleged that during 2020-2024, the accused used shell companies and middlemen to bribe Indian officials. it’s straightforward
- Securities fraud conspiracy: Gautam Adani and others misled investors on the basis of false financial documents.
- Wire Fraud Conspiracy: False promises and misrepresentations were used to obtain investments.
- Bond issue fraud: It is alleged that financial details were concealed to mislead investors and fraud was committed in the issuance of bonds.
- Conspiracy to obstruct investigation: Prosecutors allege that the accused have attempted to destroy records and mislead investigators.
Tags: Adani Group, business news, Gautam Adani
FIRST PUBLISHED: November 21, 2024, 15:40 IST
