Mumbai: Following the initial response from the Adani Group Chairman, Gautam Adani, and other Indian executives, who were charged by US prosecutors for their alleged involvement in a bribery scheme, Adani Green Energy Limited has announced its decision to halt the proposed USD denominated bond offerings.
In a formal statement released on Thursday, Adani Green Energy Limited disclosed, "In light of the recent developments, including the criminal indictment and civil complaint filed by the United States Department of Justice and the United States Securities and Exchange Commission in the United States District Court for the Eastern District of New York against our Board members, Gautam Adani and Sagar R. Adani, alongside our Board member, Vneet Jaain, we have made the decision to suspend the proposed USD denominated bond offerings."
The statement further explained, "The United States Department of Justice has issued a criminal indictment and filed a civil complaint in the United States District Court for the Eastern District of New York against our Board members, Gautam Adani and Sagar R. Adani, along with our Board member, Vneet Jaain. Concurrently, the United States Department of Justice has also included our Board member, Vneet Jaain, in the criminal indictment. These developments have led to our subsidiaries' decision to put the proposed USD denominated bond offerings on hold."
The U.S. Attorney's Office for the Eastern District of New York has stated, "A five-count criminal indictment was unsealed in federal court, charging Gautam Adani, Sagar R. Adani, and Vneet S. Jaain with conspiracies to commit securities and wire fraud, as well as substantive securities fraud. They are accused of their roles in a multi-billion-dollar scheme aimed at securing funds from U.S. investors and global financial institutions through false and misleading statements."
Additionally, the indictment alleges that Ranjit Gupta and Rupesh Agarwal, former executives of a renewable-energy company listed on the New York Stock Exchange (U.S. Issuer), and Cyril Cabanes, Saurabh Agarwal, and Deepak Malhotra, former employees of a Canadian institutional investor, are involved in a conspiracy to violate the Foreign Corrupt Practices Act in relation to the bribery scheme.
"As alleged, the defendants orchestrated an elaborate scheme to bribe Indian government officials to secure contracts worth billions of dollars. Gautam S. Adani, Sagar R. Adani, and Vneet S. Jaain have been accused of lying about the bribery scheme as they sought to raise capital from U.S. and international investors," stated United States Attorney Breon Peace.
Breon Peace further alleged that the individuals named in the indictment have compromised the integrity of international financial markets and deceived U.S. and global investors.
"The business executives are accused of bribing the Indian government to finance lucrative contracts that were intended to benefit their businesses. Adani and other defendants have also been accused of defrauding investors by raising capital on the basis of false statements regarding bribery and corruption. Moreover, other defendants are alleged to have attempted to conceal the bribery conspiracy by obstructing the government's investigation," stated FBI Assistant Director in Charge James Dennehy.
The indictment also accuses the executives of obstructing investigations by the FBI, Department of Justice (DOJ), and Securities and Exchange Commission (SEC).
The United States Attorney's Office has clarified that the allegations outlined in the indictment are merely accusations, and the individuals named are considered innocent until proven guilty beyond a reasonable doubt.
The investigation was spearheaded by the Federal Bureau of Investigation's Corporate, Securities, and Commodities Fraud, as well as International Corruption Units within the New York field office. The prosecution of this case is being managed by the Business and Securities Fraud Section of the United States Attorney's Office for the Eastern District of New York, in collaboration with the Criminal Division's Fraud Section.
