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‘Something is happening’: Adani CFO says none of 11 public firms subject to US indictment

‘Something is happening’: Adani CFO says none of 11 public firms subject to US indictment

Gautam Adani bribery charges: Adani CFO Jugeshinder Robbie Singh said that they were aware that something was wrong, but they learned about the ‘specificity’ of it (bribery charges in the US) only two days ago. He said the Adani Group would make a ‘detailed comment’ after receiving counsel’s approval.

Singh said the charges relate to a contract from Adani Green that accounts for 10 percent of the power company’s business. Singh said Adani Group has 11 public companies and none of them are subject to indictment and none of them has been charged with any crime.

“This specifically relates to a contract by Adani Green that accounts for roughly 10% of Adani Green’s overall business (much more precise and comprehensive details are available on this and we will detail these in an appropriate forum). 1. We became aware of this “feature” 2 days ago. We knew something was wrong (and in February 2024 we disclosed the 144a Risk Factors circular. This was the first public issuance of any of our portfolio companies or their subsidiaries or joint venture companies after our March 31, 2023 annual results). 2. @AdaniOnline has a portfolio of 11 public companies, none of which are subject to indictment (i.e., they are defendants in any legal action, Justice Department attorneys recently filed with a court in New York). 3. None of the issuers (i.e. companies in our portfolio or specific issuers that are subsidiaries of public companies) have been accused of any wrongdoing in the said regulatory filing,” Singh said.

He added that many media reports will select “irrelevant items” and try to create a headline, but they will respond fully after examining the issue in detail.

Singh’s detailed statement came after the group issued a general statement regarding the US indictment on November 21. U.S. prosecutors have accused Gautam Adani, his nephew Sagar Adani and other executives of being part of a $2 billion bribery scheme. The US Securities and Exchange Commission (SEC) said the group paid $265 million in bribes to Indian officials to secure solar energy contracts that were expected to generate billions of dollars in profits.

Adani and his partners are also accused of falsifying returns to obtain more than $3 billion in loans and bonds.

In a previous statement, the group denied the allegations and said they were unfounded. Adani Group said it would take every possible legal action. “The allegations by the U.S. Department of Justice and the U.S. Securities and Exchange Commission against Adani Green executives are unfounded and have been denied. As the U.S. Department of Justice states, “The charges contained in the indictment are allegations and the defendants are presumed innocent until proven guilty.” “All legal remedies will be taken,” it said.

Meanwhile, a senior SEBI official said market regulator Securities and Exchange Board of India (SEBI) will consider taking action on the US indictment only if cooperation is sought under the bilateral inter-regulatory memorandum of understanding with the US SEC.