Gautam Adani, Nephew Sagar Not Charged Under US Foreign Corrupt Practices Act, Says Adani Green Energy

The Adani Group stated on Wednesday that billionaire Gautam Adani and his nephew Sagar Adani have not been accused of any violations of the US Foreign Corrupt Practices Act (FCPA) in the indictment filed by US authorities in a bribery case.

Gautam Adani, founder and chairman of the ports-to-energy conglomerate, along with his nephew Sagar Adani and key executive Vneet Jaain, have been charged by the US Department of Justice for their alleged involvement in a scheme to pay USD 265 million in bribes to Indian officials. The bribes were reportedly aimed at securing contracts for the supply of solar electricity, which would generate a USD 2 billion profit over a 20-year period.

In a stock exchange filing, Adani Green Energy Ltd, which is at the centre of the bribery allegations, said reports claiming that the three have been charged with FCPA violations "are incorrect". They have been charged with offenses that could result in a monetary fine or penalty.

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"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. "These directors have been charged on three counts in the criminal indictment, namely (i) alleged securities fraud conspiracy, (ii) alleged wire fraud conspiracy, and (iii) alleged securities fraud," the filing said.

A criminal indictment has been filed by the US Department of Justice in the United States District Court for the Eastern District of New York against Gautam Adani, Sagar Adani, and Vneet Jaain.

The Adani Group stated that the indictment does not specify any particular fine or penalty. The civil complaint alleges that the executives violated provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934, and also assisted in Adani Green Energy Limited's violations of these Acts.