Adani Group Chief Financial Officer Jogeshinder Singh on Friday denied US allegations that the group’s chairman Gautam Adani and a number of executives were involved in a bribery scheme worth 265 million dollars, while the Indian government confirmed that it had not received any amount. official request from the United States regarding the case. According to Reuters.
US authorities have 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 obtain energy supply contracts. solar energy 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 sure that nothing like that happened,” and noted that if such a large sum had been paid, he would have known about it.
The group previously called the accusations “baseless” and announced its intention to use “all legal means possible.”
Singh revealed that the group would not take any immediate action, while the defendants intend to provide clarification within the next 10 days after consulting their legal advisors.
Government reactions
Indian Foreign Ministry spokesperson Randhir Jaiswal explained that this legal case concerns companies and individuals, noting that New Delhi had not received any requests from Washington regarding this case.
He added that the government was not informed in advance of 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
Previously, US prosecutors filed an indictment against Gautam Adani, along with 7 others.
The list says the alleged bribes were part of a plan to win solar power supply contracts, and that those plans were concealed when applying for financing from U.S. investors.
The defendants are also accused of providing misleading data to U.S. investors and international financial institutions in order to obtain financing of more than $3 billion.
The charges referred to coordinated efforts to conceal bribes through various means, including falsifying internal reports and analyses.
Repercussions of the accusations
These accusations led to significant losses in the value of the shares of the Adani group, which lost approximately $34 billion after the announcement of the case.
However, stocks saw a significant rebound this week, narrowing overall losses to around $7 billion, according to Reuters.
Shares of Adani Green Energy rose almost 22% on Friday.
Indian banks have started reviewing their financial exposure to the Adani Group, with a view to strengthening due diligence procedures.
Moody’s downgraded the rating of seven companies affiliated with the group to “negative”, stressing that these accusations could weaken the group’s ability to access financing and increase capital costs.
Political unrest
The affair sparked disruption in India’s Parliament amid political controversy, with opposition parties accusing Prime Minister Narendra Modi’s government of favoring and covering up for Adani.
The government and ruling party have denied the accusations, emphasizing the independence of the judiciary.
Despite the accusations, the Adani Group confirmed it was continuing its expansion plans in logistics and energy, and Singh said: “There are no acquisition plans in progress 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 the Adani Group operates include infrastructure sectors in the areas of development and operation of ports and airports.