New Delhi: Billionaire Gautam Adani, his nephew Sagar, executives of Adani Green Energy Ltd, and Cyril Cabanes, an official of Azure Power Global Ltd were charged by US prosecutors over a multi-billion-dollar bribery scheme involving Adani Green and Azure Power. The accused were indicted for their alleged role in paying USD 250 million bribe to Indian officials in exchange for favourable terms for solar power contracts.
The US Securities and Exchange Commission charged billionaire Gautam Adani and others for the conduct in the alleged bribery scheme. The SEC alleged that the bribery scheme was planned to enable Adani Green and Azure Power to capitalise on a multi-billion-dollar solar energy project that the companies had been awarded by the Indian government to sell 12 gigawatts of solar power.
SEC alleged that when the scheme was underway, Adani Green raised more than $175 million from US investors and Azure Power stock traded on the New York Stock Exchange.
Adani and Adani Group officials accused of allegedly promising to pay the equivalent of hundreds of millions of dollars in bribes to the Indian government officials who in turn ensure that the energy is purchased at above-market rates that would benefit Adani Green and Azure Power.
Gautam and Sagar Adani are alleged to be engaged in the bribery scheme during a September 2021 note offering by Adani Green that raised $750 million, including approximately $175 million from US investors, the SEC stated in its release.
The Securities and Exchange Commission mentioned that Adani Green produced statements in regards to anti-corruption and anti-bribery efforts that were found to be false or misleading in light of Gautam and Sagar Adani’s conduct.
Charges against Gautam Adani and Sagar Adani
The US SEC has charged Gautam and Sagar Adani with violating the antifraud provisions of the federal securities laws.
The SEC charged Cyril Cabanes, a former member of Azure Power’s Board of Directors, with Foreign Corrupt Practices Act (FCPA) violations. He is accused of violating the FCPA. The US authority has sought a permanent injunction, a civil penalty, and an officer and director bar.
The complaints were filed in the US District Court for the Eastern District of New York seeking permanent injunctions, civil penalties, and officer and director bars.
The US Attorney’s Office for the Eastern District of New York unsealed criminal charges against Adani Group chairman Gautam Adani and Sagar and Cabanes, among other individuals connected to Adani Green and Azure Power.
“As alleged, Gautam and Sagar Adani induced U.S. investors to buy Adani Green bonds through an offering process that misrepresented not only that Adani Green had a robust anti-bribery compliance program but also that the company’s senior management had not and would not pay or promise to pay bribes, and Cyril Cabanes participated in the underlying bribery scheme while serving as director of a U.S. public company,” said Sanjay Wadhwa, Acting Director of the SEC’s Division of Enforcement. “We will continue to vigorously pursue and hold individuals, including senior corporate officers and directors, accountable when they violate our securities laws.”
The above-mentioned information has been taken from the press release of The Securities and Exchange Commission.
Adani Group chairman Gautam Adani charged in the US with USD 250 million bribery and fraud. The US SEC stated that Adani Green’s note offering raised $175 million from US investors while bribery scheme was in progress. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
