India’s Adani comments on US bribery allegation
Indian tycoon Gautam Adani, founder of the Adani Group, has for the first time commented on recent bribery allegations from the US authorities, emphasizing his conglomerate’s unwavering commitment to regulatory compliance. He dismissed the allegations and claimed that “every attack makes us stronger.”
Speaking at an awards ceremony in Jaipur, Adani addressed accusations that he, along with seven others – including his nephew Sagar Adani and Vneet S. Jaain, managing director of Adani Green Energy – were involved in a $265 million bribery scheme aimed at securing Indian power supply contracts. The US Department of Justice has charged them with misleading American investors during fundraising efforts while engaging in corrupt practices in their home country.
Although the group has denied these allegations, the situation has placed substantial scrutiny on the conglomerate, which has faced similar challenges in the past.
“Less than two weeks ago, we encountered serious allegations regarding compliance at Adani Green Energy. This is not our first experience with adversity. What I can tell you is that every attack makes us stronger and every obstacle becomes a stepping stone,” Adani stated, according to the Times of India.
Adani reflected on the difficulties faced by his company, including resistance to its coal-mining endeavors in Australia and previous short-selling attacks. “Over the years, I have come to accept that roadblocks are part of pioneering. The bolder your vision, the more scrutiny you attract. It’s in this very scrutiny that we must find the courage to rise above and innovate,” he remarked.
Last year, US short seller Hindenburg Research released a report claiming that the company was involved in large-scale stock manipulation and accounting fraud. The report ended up leading to $150 billion being wiped off the group’s market value. Adani Group has denied all allegations and linked them to “Soros-funded interests,” following investigations by the Organized Crime and Corruption Reporting Project (OCCRP) and major Western media outlets, including the Financial Times and The Guardian.
These investigations claimed the Adani family had “secretly” invested “hundreds of millions of dollars” to buy its own shares in the Indian stock market. OCCRP lists foundations owned by American investor-turned-philanthropist George Soros among its donors.
While addressing concerns about the speed at which negativity can spread, Adani reiterated his dedication to world-class compliance practices as the legal situation unfolds. “Today, the pace of misinformation can outstrip the truth. As we navigate these legal challenges, I reaffirm our steadfast commitment to regulatory excellence,” he affirmed.
Earlier this week, the Adani Group stated that the DOJ indictment does not present any direct evidence that Adani executives paid bribes to Indian government officials. Instead, it added that the claims are based on allegations of promises or discussions of bribes, with no confirmation of actual payments. The group also said that no representatives of the Adani Group had been charged with violating the Foreign Corrupt Practices Act (FCPA) or obstructing justice, raising questions about the motives behind the ongoing scrutiny.
The legal wrangling and alleged inaccurate reporting have dealt a financial and reputational blow to the group. International projects have been canceled, and the conglomerate has seen nearly a $55 billion loss in market capitalization across its 11 listed companies, according to the company.
