Adani Green Energy's FIRST reaction after US indicts Gautam Adani in alleged bribery case

In its first reaction, after US prosecutors charged Adani group Chairman Gautam Adani and other Indian executives by linking them to an alleged bribery scheme, Adani Green Energy responded by saying that it had decided not to proceed with the proposed USD-denominated bond offerings.

In an exchange filing on Thursday, Adani Green Energy Limited said, "The United States Department of Justice and the United States Securities and Exchange Commission have issued a criminal indictment and brought a civil complaint, respectively, in the United States District Court for the Eastern District of New York, against our Board members, Gautam Adani and Sagar Adani. The United States Department of Justice has also included our Board member, Vneet Jaain, in such criminal indictment. In light of these developments, our subsidiaries have presently decided not to proceed with the proposed USD denominated bond offerings."

According to the US Attorney's Office, Eastern District of New York, "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 and substantive securities fraud for their roles in a multi-billion-dollar scheme to obtain funds from U.S. investors and global financial institutions on the basis of false and misleading statements."

The indictment also charges Ranjit Gupta and Rupesh Agarwal, former executives of a renewable-energy company with securities that had traded on the New York Stock Exchange (the U.S. Issuer), and Cyril Cabanes, Saurabh Agarwal and Deepak Malhotra, former employees of a Canadian institutional investor, with conspiracy to violate the Foreign Corrupt Practices Act in connection with the alleged bribery scheme.

"As alleged, the defendants orchestrated an elaborate scheme to bribe Indian government officials to secure contracts worth billions of dollars and Gautam S. Adani, Sagar R. Adani and Vneet S. Jaain lied
about the bribery scheme as they sought to raise capital from US and international investors," stated United States Attorney Breon Peace.

Breon Peace further alleged that the people named in the indictment undermined the integrity of international financial markets and defrauded U.S. and global investors.

"The business executives allegedly bribed the Indian government to finance lucrative contracts designed to benefit their businesses. Adani and other defendants also defrauded investors by raising capital on the basis of false statements about bribery and corruption, while still other defendants allegedly 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 executive of obstructing investigations by the FBI, Department of Justice (DOJ), and Securities and Exchange Commission (SEC).

The US Attorney's office says that the charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty.

The investigation was conducted by the FBI New York's Corporate, Securities and Commodities Fraud and International Corruption Units. The US government's case is being handled by the Business and Securities Fraud Section of the U.S. Attorney's Office for the Eastern District of New York and the Criminal Division's Fraud Section. 

(Except for the headline, this story has not been edited by DNA staff and is published from ANI)