A US bribery indictment of billionaire industrialist Gautam Adani is linked to one contract of Adani Green Energy that makes up some 10 per cent of its business, and no other firms in the conglomerate are accused of wrongdoing, said the conglomerate's chief financial officer (CFO) on Saturday, November 23.
On Wednesday, Gautam Adani, one of the world's richest men, and seven others were indicted for fraud by US prosecutors over their alleged roles in a $265 million scheme to bribe Indian government officials to secure power-supply deals. Adani Group has denied all allegations, calling them "baseless".
CFO Jugeshinder Singh of the ports-to-power conglomerate sought to defend the allegations, saying none of Adani's 11 public companies "are subject to indictment" or "are accused of any wrongdoing in the said legal filing".
The allegations in the US indictment relates to "one contract of Adani Green, which is roughly 10 per cent of overall business of Adani Green", Singh said on X. The US prosecutor charges are the biggest setback for the $143 billion Adani Group, which was last year hit by Hindenburg Research's allegations of improper use of offshore tax havens, claims the company denied.
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The US indictment has already significantly impacted the conglomerate's business. The group entity's shares have plummeted, some global banks are considering temporarily halting fresh credit to Adani, and Kenya has cancelled two deals with Adani worth over $2.5 billion.
Adani Group, which has several other global projects, is also charged with misleading US investors about Adani Green's compliance with anti-bribery principles and laws. Singh said they became aware of the "specificity" of the US charges only two days ago on Saturday.
"We were aware that something is afoot," he said, adding the company disclosed as much to investors in its $750 million 2024 bond offering, about $175 million of which was raised from financial institutions in the United States.
The US indictment, however, says the bond offering "contained false and misleading assurance about, among other things, Adani Green Energy's 'corporate governance' and touted 'maintaining transparency and compliance in every aspect'."
The charges also put the spotlight on Sagar Adani, a director at Adani Green and millennial scion of the company who kept track of hundreds of millions of dollars of alleged bribes to Indian officials on his mobile phone. Singh said the group would make a more detailed comment once legal approval is given as the matter is before the courts.
