US charges Adani for fraud

New York, Nov 21: Indian businessman Gautam Adani who is one of the world’s richest people has been indicted in the US on charges he duped investors by concealing that his company’s huge solar energy project on the subcontinent was being facilitated by an alleged bribery scheme.
Adani, 62, was charged in an indictment unsealed Wednesday with securities fraud and conspiracy to commit securities and wire fraud. The case involves a lucrative arrangement for Adani Green Energy Ltd. and another firm to sell 12 gigawatts of solar power to the Indian government – enough to light millions of homes and businesses.
The indictment paints Adani and his co-defendants as playing two sides of the deal.
It accuses them of portraying it as rosy and above-board to Wall Street investors who poured several billion dollars into the project over the last five years while, back in India, they were paying or planning to pay about USD 265 million in bribes to government officials to help secure billions of dollars’ worth of contracts and financing.
Adani and his co-defendants sought to “obtain and finance massive state energy supply contracts through corruption and fraud at the expense of US investors,” Deputy Assistant Attorney General Lisa Miller said.
US Attorney Breon Peace said the defendants “orchestrated an elaborate scheme” and sought to “enrich themselves at the expense of the integrity of our financial markets.” In a parallel civil action, the US Securities and Exchange Commission accused Adani and two co-defendants of violating antifraud provisions of US securities laws. The regulator is seeking monetary penalties and other sanctions.
Both cases were filed in federal court in Brooklyn.
Adani’s co-defendants include his nephew Sagar Adani, the executive director of Adani Green Energy’s board, and Vneet Jaain, who was the company’s chief executive from 2020 to 2023 and remains managing director of its board.
Online court records did not list a lawyer who could speak on Adani’s behalf. An email message seeking comment was left with an arm of his conglomerate, the Adani Group. (PTI)
Emails were also sent to lawyers representing his co-defendants. Sagar Adani’s lawyer, Sean Hecker, declined the comment. The others did not immediately respond. Sanjay Wadhwa, acting director of the SEC’s Enforcement Division, said Gautam and Sagar Adani are accused of persuading investors to buy their company’s bonds by misrepresenting “not only that Adani Green had a robust anti-bribery compliance programme but also that the company’s senior management had not and would not pay or promise to pay bribes.” (PTI)