Gautam Adani and American Court.
Washington: After the allegations leveled by the US court against Indian industrialist Gautam Adani, the possibility of tension in India-US relations has increased. At present India and America are strategic partners. In such a situation, both the countries are taking bold steps on this matter. The administration of outgoing US President Joe Biden has created a big challenge for the newly elected President Donald Trump by making such allegations against the Indian industrialist. Let us now tell you what allegations have been made against Gautam Adani in the American court and after this, what is the latest statement of the American White House?
Accusations against Gautam Adani
Industrialist Gautam Adani has been accused by US prosecutors of allegedly being involved in paying bribes of $265 million (about Rs 2,200 crore) to Indian officials in exchange for favorable terms to win solar power contracts in India. The US Justice Department has charged Adani, India’s second-richest man, and his nephew Sagar Adani, along with seven others, with bribing officials in Andhra Pradesh and Odisha to buy expensive solar power. However, the names of the officers have not been disclosed in this. These projects are expected to generate profits of more than $2 billion for the group over 20 years.
America started investigation in 2022
Prosecutors said the US had launched an investigation into the matter in 2022. He alleged that the group raised $2 billion through loans and bonds from American companies, including others, by providing false and misleading information about the company’s anti-bribery activities and policies. Also, the group did not provide correct information about the investigation regarding bribery. US law allows foreign countries to pursue corruption charges in cases involving their investors or markets. Meanwhile, Adani Group has denied all the allegations and termed them baseless.
There are allegations against these companies of Adani
According to the allegations, Adani Green Energy, the green energy arm of Adani Group, had won the bid to supply 8,000 MW of power in 2021 in bids invited by public sector Solar Energy Corporation of India (SECI). In this tender, New Delhi’s Azure Power had won the bid for supply of four gigawatts. Along with Azure Power, officials from Canada’s public pension fund CDPQ are also named in the case. According to the US Attorney’s Office, SECI failed to find a buyer for the power at the prices contracted with Adani and Azure. Adani personally met government officials in 2021 and 2022 and offered them bribes to sign power sale agreements with SECI. Following the promise of bribes, power distribution companies in Andhra Pradesh, Odisha, Tamil Nadu and Chhattisgarh settled with SECI.
bribe given to officials
US prosecutors have alleged that an official of the Andhra Pradesh state government was paid Rs 25 lakh per megawatt. The state then agreed to buy 7,000 megawatts (7 GW) of solar power from SECI. Odisha also purchased 500 MW power in the same manner. Adani Group has denied all the allegations and termed them baseless. The group has canceled the $600 million bond of Adani Green Energy Ltd. Before the matter came to light, the issue was subscribed three times. “The allegations made by the US Department of Justice and the US Securities and Exchange Commission against the directors of Adani Green are baseless,” a group spokesperson said in a statement. Despite these news, there is a huge decline in the shares of Adani Group in the stock market.
loss of 26 billion dollars
After these allegations, there has been a loss of about $ 26 billion (Rs 2.19 lakh crore) in the market valuation of ten listed companies of Adani Group. This is more than double the decline in market valuation since Hindenburg’s report in January 2023. Prosecutors have charged Adani, 62, and two Adani Green Energy Ltd. executives, his nephew Sagar R. Adani and CEO Vineet S. Jain, with conspiracy to defraud investors in the case. The three are accused of carrying out the scheme with the help of five other defendants. He faces charges under the Foreign Corrupt Activities Act (FCPA) and obstruction of justice.
Personal allegations against Adani
Personal allegations have also been made against Gautam Adani in this case. Prosecutors have claimed that Adani personally met with a government official several times. According to prosecutors, the defendants had prepared a large amount of documents in this regard. Defendant Rupesh Aggarwal also prepared an analysis of the bribery scheme using PowerPoint and Excel. The indictment charges Jain along with Gautam and Sagar Adani with conspiracy and securities fraud. Also, Ranjit Gupta and Agarwal, former executives of another publicly traded renewable energy company, have been charged with FCPA violations. Agarwal and three former employees of a Canadian institutional investor—Cyril Cabens, Saurabh Agarwal and Deepak Malhotra—have been charged with obstruction of justice and FCPA violations.
White House statement
After this case, now the ‘White House’, the official residence and office of the US President, has said that the relations between India and America rest on a strong foundation. But he is confident of handling the situation arising out of bribery allegations against Indian billionaire Gautam Adani. White House Press Secretary Karine Jean-Pierre said in her daily press conference on Thursday that the administration is aware of the allegations against Adani. Pierre said, “Obviously we are aware of these allegations and I encourage you to contact the SEC (Securities and Exchange Commission) and DOG (Department of Justice) to get detailed information about the allegations against Adani Group.” “What I would say about US-India relations is that we believe these relations rest on a very strong foundation based on our people-to-people ties and cooperation on a range of global issues,” she said. The press secretary said, “We believe and we are confident that we will resolve this issue in the same way as we have resolved other issues.”
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