Today, On 27th November, Gautam Adani is facing allegations of securities law violations, according to Adani Green. The company acknowledged the charges but emphasized its commitment to compliance and transparency. These allegations have sparked fresh scrutiny over the group’s financial practices. The matter highlights ongoing regulatory challenges for the Adani conglomerate.
Indian billionaire Gautam Adani has been charged in the United States for alleged violations of securities laws, facing potential fines, but he has not been charged under the U.S. Foreign Corrupt Practices Act, Adani Green Energy announced on Wednesday.
Last week, U.S. authorities accused Adani, his nephew and executive director Sagar Adani, and managing director of Adani Green, Vneet S. Jaain, of participating in a scheme to pay Rs. 265 million in bribes to secure power supply contracts in India, while misleading U.S. investors.
In its statement, the company noted that the U.S. SEC’s complaint,
“Prays for an order directing the defendants to pay civil monetary penalties (but) it does not quantify the amount of penalty.”
This civil case from the Securities and Exchange Commission runs parallel to a criminal indictment against Adani and others by U.S. federal prosecutors.
Adani Green further disclosed that,
“These directors have been charged on three counts in the criminal indictment for alleged securities fraud conspiracy, alleged wire fraud conspiracy, and alleged securities fraud.”
The Adani Group has rejected the allegations in the U.S. indictment as baseless and stated that it will pursue all available legal options.
Adani Green Energy Limited (AGEL), founded in 2015 and based in Ahmedabad, Gujarat, is a prominent player in India’s renewable energy sector. As a part of the Adani Group, AGEL is dedicated to the development, construction, ownership, operation, and maintenance of power plants that harness renewable resources, including solar, wind, and hybrid energy.
Notably, the company manages the Kamuthi Solar Power Project, recognized as one of the largest solar photovoltaic installations globally.
Recently, AGEL faced legal challenges, with U.S. authorities indicting founder Gautam Adani and several executives for allegedly participating in a Rs. 265 million bribery scheme aimed at obtaining power supply contracts and deceiving U.S. investors. These serious allegations have had a major financial impact, resulting in a 36% decline in Adani Green’s stock price and a loss of Rs. 9.6 billion in market capitalization.