The investigation into the Adani Group by the US has been expanded to focus on the actions of its founder, Gautam Adani, and the possibility of bribery within the company. Prosecutors are examining whether individuals associated with Adani, including Gautam Adani himself, may have paid officials for preferential treatment on an energy project.
The US Attorney’s office for the Eastern District of New York and the Justice Department’s fraud unit in Washington are overseeing the investigation, which also includes a look into renewable energy company Azure Power Global.
Adani Group has stated that they are not aware of any investigation against their chairman and emphasized their commitment to operating with the highest standards of governance and compliance with anti-corruption laws. Both Adani Group and Azure are competitors in the green-energy sector, having secured contracts for projects under the same state-run solar program.
Azure has faced challenges following whistleblower complaints of improper payments and was delisted from the New York Stock Exchange due to delayed filings. The company has been cooperating with the Justice Department and SEC after an internal investigation revealed potential involvement in improper payments related to certain projects.
The Foreign Corrupt Practices Act prohibits companies or individuals with US ties from offering anything of value to foreign officials for favorable treatment. While Adani Group does not trade in the US, it does have American investors.
In January last year, the American short-seller Hindenburg Research had alleged in a report that the Adani Group was pulling off the “largest con in corporate history” through accounting fraud, improper use of tax havens and money laundering. The Adani Group rejected these allegations, but the report pummeled the stocks of its listed companies and wiped out $111 billion of investors’ money.
Subsequently, a batch of petitions was filed in the Supreme Court of India seeking a court-monitored investigation into the allegations.
Earlier this year, the top court refused to transfer an investigation into allegations of round-tripping and money laundering by the Adani Group from the Securities and Exchange Board of India to a Special Investigation Team.
