Gautam Adani, nephew summoned by U.S. SEC over alleged bribery scheme

The U.S. Securities and Exchange Commission (SEC) has reportedly issued formal summons to Adani group chairman and others in the alleged $265 million bribery case filed in the eastern district of New York, according to a global news agency. Though Adani group has neither confirmed nor denied receiving the summon, if it's true, the company is supposed to respond in 21 days.

A fresh application has also been filed before the Supreme Court on Sunday, which seeks to take the bribery case filed in the U.S. on record. The petition also raises questions over SEBI's delay in releasing its probe report in the Hindenburg case.

SEC has charged Gautam Adani and Sagar Adani, executives of Adani Green Energy Ltd., and Cyril Cabanes, an executive of Azure Power Global Ltd., for conduct arising out of a "massive" bribery scheme.

According to the SEC’s allegations, the bribery scheme was allegedly orchestrated to enable the two renewable energy companies to capitalise on a multi-billion-dollar solar energy project that the companies had been awarded by the Indian government.

"During the alleged scheme, Adani Green raised more than $175 million from U.S. investors and Azure Power’s stock was traded on the New York Stock Exchange," says the SEC filing.

In one action, the SEC charged Gautam Adani, Chairman of Adani Green’s Board of Directors, and his nephew, Sagar Adani, Executive Director of Adani Green’s Board. According to the SEC’s complaint, Gautam and Sagar Adani allegedly orchestrated a bribery scheme that involved paying or promising to pay the equivalent of hundreds of millions of dollars in bribes to Indian government officials to secure their commitment to purchase energy at above-market rates that would benefit Adani green and Azure Power.

In the other action, the SEC charged Cyril Cabanes, a former member of Azure Power’s Board of Directors, with Foreign Corrupt Practices Act (FCPA) violations for his role in the alleged bribery scheme. According to the SEC’s complaint, Cabanes allegedly facilitated the authorisation of bribes in furtherance of the scheme while in the United States and abroad.

Adani Group, meanwhile, has said it will respond to bribery allegations levelled by the U.S. government after "reviewing" the charges in detail and seeking counsel approval as the matter is "sub-judice." Jugeshinder Robbie Singh, the chief financial officer of Adani Group, says the allegations specifically relate to one contract of Adani Green Energy, which is roughly 10% of the overall business of Adani Green.

"There is a lot more precise and comprehensive detail of this which we will elaborate in an appropriate forum," Singh says, adding that Adani Group has a portfolio of 11 public companies and none are subject to indictment. “None of the issuers (ie companies in our portfolio or specific issuers that are subsidiaries of the public companies) are accused of any wrongdoing in the said legal filing,” he says.