On Friday, Adani Group Chief Financial Officer, Jogeshinder Singh, denied American allegations indicating the involvement of the group’s chairman, Gautam Adani, and a number of executives in a bribery scheme worth $265 million, while the Indian government confirmed that it had not received any official request from the United States regarding the case. According to Reuters.
US authorities accused Gautam Adani and his relatives, including his nephew and Adani Green Energy Director Vineet S. Jain, of participating in a scheme to pay bribes to secure solar energy supply contracts in India.
In a statement at an event in Mumbai, Singh said, “We strongly reject these allegations on behalf of the individuals. We know for certain that nothing of the sort happened,” and noted that if such a large sum had been paid, he would have known about it.
The group had previously described these accusations as “baseless” and announced its intention to take “all possible legal means.”
Singh revealed that the group will not take any immediate action, while the accused individuals intend to provide clarifications in the next 10 days after consulting their legal advisors.
Government reactions
Indian Foreign Ministry spokesman, Randhir Jaiswal, explained that this legal case concerns companies and individuals, noting that New Delhi had not received any request from Washington regarding the case.
He added that the government was not informed in advance about the accusations and is not currently participating in this discussion.
For its part, the ruling Bharatiya Janata Party (BJP) confirmed that the government finds no reason to defend Adani, stressing that the law will take its course.
US indictments
Earlier, US prosecutors filed an indictment against Gautam Adani, in addition to 7 other people.
The list indicates that the alleged bribes were part of a plan to win solar energy supply contracts, and these plans were concealed while requesting financing from American investors.
The defendants also face charges of providing misleading data to American investors and international financial institutions to obtain financing of more than $3 billion.
The accusations referred to coordinated efforts to conceal bribes through various means, including falsifying internal reports and analyses.
Repercussions of the accusations
The accusations led to significant losses in the value of Adani Group’s shares, as it lost about $34 billion after the case was announced.
However, stocks saw a significant rebound this week, reducing overall losses to about $7 billion, according to Reuters.
Adani Green Energy shares rose nearly 22% on Friday.
Indian banks have begun reviewing their financial exposure to the Adani Group, with a view to enhancing due diligence procedures.
Moody’s lowered its rating on 7 companies affiliated with the group to “negative”, noting that the accusations may weaken the group’s ability to access financing and increase capital costs.
Political unrest
The case caused the disruption of the Indian Parliament amid political controversy, as opposition parties accused Prime Minister Narendra Modi’s government of favoring Adani and covering up for him.
The government and ruling party denied these accusations, stressing the independence of the judicial system.
Despite the accusations, the Adani Group confirmed that it is continuing with its expansion plans in the fields of logistics and energy, and Singh said, “There are no pending acquisition plans, and these allegations will not affect our investments.”
Adani Group?
The Adani Group is an Indian multinational conglomerate, headquartered in Ahmedabad, Gujarat (western India).
The group was founded in 1988 by Gautam Adani, a prominent businessman and one of the richest people in India and the world.
The sectors in which Adani Group operates include infrastructure sectors in the areas of developing and operating ports and airports.
