Indian Oil Corporation (IOC) has launched an investigation into allegations that a US specialty chemicals firm bribed its officials 15 years ago to obtain contracts for supplying catalysts, PTI news reported, citing one of the IOC’s regulatory filings.
The US company, Albemarle Corporation, is known globally as a seller of catalysts used in oil refinery operations. According to a US Securities and Exchange Commission (SEC) order dated September 28, 2023, Albemarle allegedly “paid nearly $1.14 million in commission to an intermediary company in India related to IOC business,” resulting in approximately $11.14 million in profits between 2009 and 2011.
The SEC order details how an Albemarle consultant and sales agent allegedly bribed unnamed decision-makers at IOC from 2009 to 2011, as well as a private-sector client from 2009 to 2017. These bribes were purportedly intended to secure orders for catalysts and obtain sensitive, non-public information.
Albemarle faced scrutiny for bribery issues in 2017 and reached a settlement in September 2023, paying over $198 million in fines. In its statement, IOC clarified that it is “neither a party to nor is there any allegation against it” regarding the SEC proceedings. However, the corporation has decided to conduct an internal review to understand the circumstances surrounding the allegations and to determine appropriate subsequent actions.
IOC, a state-owned company, emphasized its commitment to high standards of governance, transparency, and regulatory compliance.
The company operates 10 of India’s 22 oil refineries, with a combined capacity of 80.8 million metric tons per year, refining crude oil into fuels such as petrol and diesel. IOC holds approximately 40% of the fuel market share in India.
The development coincides with ongoing investigations by US authorities into a private Indian conglomerate, Adani Group, led by billionaire Gautam Adani. Last month, US prosecutors indicted Adani and other officials for allegedly paying $250 million in bribes to Indian government officials to secure lucrative solar power contracts. The group has denied these allegations, describing them as “baseless.”