Adani Green Energy (AGEL) Wednesday said that the group’s chairman Gautam Adani, his nephew Sagar Adani, the company’s managing director Vneet Jaain have not been charged with the US Foreign Corrupt Practices Act (FCPA).
Adani Group founder and chairman Gautam Adani is the chairman of AGEL, while Sagar Adani is its executive director.
The clarification from AGEL came following reports that the trio have been charged with violations of the US FCPA. Separately, senior lawyer and former attorney general Mukul Rohatgi, who has represented the Adani group in a few cases, also said that Gautam Adani and Sagar Adani have not been charged in the more serious counts one and five of the five-count indictment by US prosecutors.
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“Such statements are incorrect. Gautam Adani, Sagar Adani and Vneet Jaain have not been charged with any violation of the FCPA in the counts set forth in the indictment of the US DOJ or civil complaint of the US SEC,” AGEL said in a statement on Wednesday in response to media reports that said the group has been accused of violating the US FCPA.
The US FCPA makes it unlawful for certain classes of persons and entities to act corruptly in furtherance of an offer, promise, authorisation or payment of money or anything of value, directly or indirectly, to a foreign official for the purpose of obtaining or retaining business for, or directing business to, any person.
On November 20, the US prosecutors, in a criminal indictment, had alleged that Gautam Adani and seven others offered or promised to offer Rs 2,029 crore (US $265 million) in bribes to Indian state government officials for securing “lucrative solar energy supply contracts” with state electricity distribution companies. Apart from Gautam Adani, Sagar Adani, and Vneet Jaain, the indictment named five others who were associated with Azure Power and the Canadian pension fund Caisse de dépôt et placement du Québec (CPDQ).
The Adani Group has denied all allegations and termed them baseless.
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AGEL further said Gautam Adani, Sagar Adani, and Vneet Jain have been charged on three counts in the criminal indictment – alleged securities fraud conspiracy, alleged wire fraud conspiracy, and alleged securities fraud.
On expected financial implications, if any, due to penalty, AGEL in a separate filing said, “The indictment does not specify any quantum of any fine / penalty.”
Following the AGEL’s clarification, its shares were trading at Rs 933.45 a share, up 3.79 per cent on the BSE in morning trades. Adani Enterprises was up 3.53 per cent and Adani Ports and Special Economic Zone gained 1.26 per cent.
Adanis not charged in more serious counts: Senior lawyer Mukul Rohatgi
Rohatgi said Wednesday that Gautam Adani and Sagar Adani have not been charged in the more serious counts one and five of the five-count indictment in the US. Count one pertains to an alleged conspiracy to violate the FCPA, and count five pertains to the allegations of conspiracy to obstruct justice. Rohatgi, who said he was giving his personal views as a lawyer, also said that US prosecutors’ indictment does not mention specifics of the alleged bribery scheme, specifically who all were purportedly bribed and in what manner.
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“It is very important to note that count one and count five are more important than the others. But…neither in count one nor in count five is Mr Adani or his nephew charged,” said Rohatgi, while clarifying that he was not a spokesperson for the Adani group but has represented the conglomerate in a few cases.
“So, count number one contained in para 124 onwards of the indictment is against certain other persons, minus the two Adanis…that is the conspiracy to violate the Foreign Corrupt Practices Act…It is somewhat similar to the Prevention of Corruption Act in India… In the last count, which is a very important count, it is a count relating to obstruction of justice. In that count, namely, count number five, the Adanis are not named…their officers are not named, but certain other people are named, including a foreign party,” Rohatgi said.
To be sure, while the indictment does not specifically name the Adanis in counts one and five, the opening paragraphs of all the counts has the statement: “The allegations contained in paragraphs 1 through 123 (all the paragraphs in the indictment preceding the five counts) are realleged and incorporated as if fully set forth in this paragraph.”
Those specifically named in counts one and five are individuals who were associated with Azure and CPDQ. The three counts in which Gautam Adani, Sagar Adani, and Vneet Jaain are directly named pertain to alleged securities fraud and wire fraud conspiracies.
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“I would like to say something which has been troubling me. When you look at a charge sheet, you have to be specific to say that so and so has done such and such act. So and so has bribed certain individuals, because this is the charge sheet alleging that these people, including Adanis, have bribed Indian officials in Indian entities relating to supply and purchase of power. But I do not find a single name or a single detail in the charge sheet as to who has been bribed, in what manner has he been bribed, and the official belongs to such and such department,” Rohatgi said.
“This charge sheet is completely silent. I don’t know how one can respond to these kinds of charge sheets, but I’m sure the Adanis will take legal opinion, including from American lawyers, etc.,” the senior lawyer added.