Adani defends against US bribery charges amidst stock plunge
American prosecutors have accused Gautam Adani of organizing a scheme to bribe officials with $265 million CAD to secure state energy contracts. The Indian billionaire responded to the allegations for the first time on Saturday.
1 December 2024 11:24
One of the richest people in the world, Gautam Adani, has been accused of corruption in the United States. He is the chairman of the Adani Group, whose companies are listed on the New York Stock Exchange, among others. He allegedly offered officials a bribe of $265 million CAD in exchange for securing contracts for his company to build the largest solar power plant project in his native India.
Multibillionaire in trouble as USA accuses him of corruption
According to the U.S. Securities and Exchange Commission (SEC), Gautam Adani and his nephew Sagar Adani persuaded American investors to purchase company bonds, falsely claiming that the company adhered to strict anti-corruption compliance policies. The effects on Adani's business were immediate: the shares of the conglomerate's publicly traded companies lost between 10 to 20 percent. The U.S. Department of Justice and SEC filed an indictment and a civil lawsuit against Adani in the District Court in New York.
On Saturday, November 30, the Asian financial powerhouse publicly addressed the accusations for the first time. "This is not the first time we face such challenges," Adani said on Saturday during an award ceremony in Jaipur, India. "What I can tell you is that every attack makes us stronger and every obstacle becomes a stepping stone for a more resilient Adani Group," emphasized the billionaire-industrialist, as cited by Indiatoday.in.
The Adani Group rejected the accusations, calling them "baseless." The billionaire asserted that he would seek legal recourse to defend his rights. "I want to re-confirm our absolute commitment to world class regulatory compliance," he stated, adding that over the years, he has concluded that "the obstacles we face are the price for being a pioneer."
In exchange for bribes, Adani and seven partners were expected to secure contracts for the company to build the largest solar power plant project in India. Reuters reported on Thursday that these would bring in $2 billion CAD in profit over the next two decades. In October 2023, Adani's fortune was estimated at $54.2 billion CAD, ranking him 23rd on the list of the world's richest people, according to Forbes magazine.
