Indian billionaire Gautam Adani. , Photo courtesy: Reuters
A US court convicted billionaire Gautam Adani and his nephew Sagar and seven others, including three other executives, on fraud and bribery charges. The case pertains to a deal between Adani Green Energy and a US seller to sell 12 gigawatts of solar power to various states. The allegations came on a day when the company planned to launch green bonds in the US. Adani’s subsidiary ultimately canceled the sale.
The US Securities and Exchange Commission (SEC) has charged Adani Group founder and chairman Mr Adani with allegedly defrauding US investors and bribing officials. The SEC alleged that the bribery scheme was designed to enable renewable energy companies Adani Green and Azure Power to cash in on a multi-billion dollar solar power project awarded by the Indian government. The complaint accuses them of violating anti-fraud provisions of the federal securities laws and seeks a permanent injunction, civil penalties, and officer and director bars.
Adani shares fell sharply following news of the possible arrest of one of India’s richest businessmen. The Congress, which has repeatedly demanded a JPC probe into the “Adani mega scam”, said its stand has been vindicated. However, the BJP questioned the timing of the indictment.
This is not the first time that Mr Adani is facing a legal fight abroad. There are at least six other deals such as the Carmichael coal mine project in Australia and a wind power project in Sri Lanka.
In 2023, US-based short-seller Hindenburg Research accused Adani Group of improperly extensive use of entities established in offshore tax havens and expressed concerns about high debt levels. This was followed by another report this year alleging that SEBI chairperson Madhabi Puri Buch and her husband had made undeclared investments in shadowy offshore funds in Bermuda and Mauritius, the same entities Vinod Adani allegedly used for round-trip funds and Had to increase stock prices.
published – November 22, 2024 01:10 PM IST
