Nov 24, 2024 01:28 PM IST
Gautam Adani and seven others have been accused of paying USD 265 million in bribes to Indian government officials to secure solar energy contracts.
Gautam Adani indicted: Gautam Adani of the Adani group and his nephew Sagar Adani have been summoned to explain their stand on the US Securities and Exchange Commission (SEC) allegation of paying USD 265 million ( ₹2,200 crore) in bribes to secure lucrative solar power contracts, news agency PTI reported.
The summons were sent to the Adanis’ respective residences in Ahmedabad, with replies expected within 21 days, PTI reported, citing a November 21 notice dispatched through the New York Eastern District Court. A judgment by default will be entered against the Adanis if they don’t respond on time, the notice said.
Representatives for the Adani Group didn’t immediately respond to requests for comment, Bloomberg reported.
“Within 21 days after service of this summons on you (not counting the day you received it)…you must serve on the plaintiff (SEC) an answer to the attached complaint or a motion under Rule 12 of the Federal Rules of Civil Procedure,” said the notice.
“If you fail to respond, judgment by default will be entered against you for the relief demanded in the complaint. You also must file your answer or motion with the court,” it added.
Adani group faces bribery allegations, denies charges
Gautam Adani, 62, and seven others, including his nephew Sagar Adani, a director at Adani Green Energy Ltd, have been accused of paying approximately USD 265 million in bribes to Indian government officials to secure solar energy contracts. According to an indictment unsealed in a New York court on Wednesday, the alleged bribes were paid between 2020 and 2024 to obtain contracts expected to generate USD 2 billion in profits over 20 years.
In addition to the indictment by the US Department of Justice, the US Securities and Exchange Commission (SEC) has also charged Gautam Adani, Sagar Adani, and Cyril Cabanes, an executive at Azure Power Global, for “conduct arising out of a massive bribery scheme”.
The Adani group has denied all allegations, stating it will explore all legal remedies. “The Adani Group has always upheld and is steadfastly committed to maintaining the highest standards of governance, transparency and regulatory compliance across all jurisdictions of its operations. We assure our stakeholders, partners, and employees that we are a law-abiding organisation fully compliant with all laws,” the Adani group said in a statement.
Details of the indictment
In the US, an indictment is a formal legal charge issued by a grand jury. It notifies the accused of the allegations and grants them the right to mount a defense.
Prosecutors alleged that the Adani group raised USD 2 billion in loans and bonds, including from US firms, based on false claims about the company’s anti-bribery policies and by concealing the bribery investigation.
The investigation, which began in 2022, reportedly faced obstruction during the inquiry.
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