Why Gautam Adani is Indicted by US SEC
Adani Group Chairman Gautam Adani and seven others were indicted by US SEC in New York on Wednesday (November 20) in an alleged $250 million bribery case.
The bribes were allegedly offered to Indian government officials for securing “lucrative solar energy supply contracts” with state electricity distribution companies. “This indictment alleges schemes to pay over $250 million in bribes to Indian government officials, to lie to investors and banks to raise billions of dollars, and to obstruct justice,” a press release issued by the US Attorney’s Office, Eastern District of New York, said quoting US Deputy Assistant Attorney General Lisa H Miller.
According to the US SEC, the “Indian Energy Company” and a “US Issuer” won awards to supply 8 gigawatts and 4 gigawatts of solar power at a fixed rate to state-owned Solar Energy Corporation of India (SCI). SECI was supposed to sell the power to state electricity companies. But since SECI could not find buyers, it could not enter into corresponding power purchase agreements with Adani Group and Azure Power.
It was after this that the defendants came up with a plan to bribe state government officials in India to buy the power from SECI. A press release by the Attorney’s Office of the Eastern District of New York says, “…between approximately 2020 and 2024, the defendants agreed to pay more than $250 million in bribes to Indian government officials to obtain lucrative solar energy supply contracts with the Indian government, which were projected to generate more than $2 billion in profits after tax over an approximately 20-year period (the Bribery Scheme). On several occasions, Gautam Adani personally met with an Indian government official to advance the Bribery Scheme…”
Why US SEC is Involved
Adani and the others have been indicted for raising money for the “bribery scheme” from US investors. “…Gautam S Adani, Sagar R Adani and Vneet S Jaain lied about the bribery scheme as they sought to raise capital from US and international investors,” Breon Peace, United States Attorney for the Eastern District of New York, said, as per the press release.
“These offenses were allegedly committed… at the expense of US investors. The Criminal Division will continue to corrupt, deceptive, and obstructive conduct that violates US law, no matter where in the world it occurs,” said Miller.
James Dennehy, FBI Assistant Director in Charge, said, “Adani and other defendants also defrauded investors by raising capital on the basis of false statements about bribery and corruption, while still other defendants allegedly attempted to conceal the bribery conspiracy by obstructing the government’s investigation.”
⎪Adani Group Chairman Gautam Adani and seven others were indicted by US SEC in New York on Wednesday (November 20) in an alleged $250 million in bribes to Indian government officials regarding lucrative solar energy supply contracts.⎪
