The SEC has accused Gautam Adani, chairman of Adani Green Energy, and his nephew, Sagar Adani, of orchestrating a scheme that involved paying or promising to pay hundreds of millions of dollars in bribes to government officials. The objective was to secure commitments from these officials to purchase energy at above-market rates, thereby benefiting Adani Green and Azure Power. This alleged misconduct occurred during a $750 million note offering by Adani Green in September 2021, which included approximately $175 million raised from U.S. investors. The offering materials reportedly contained statements about the company's anti-corruption and anti-bribery efforts that were materially false or misleading in light of the alleged bribery activities.
In addition to the Adanis, the SEC has charged Cyril Cabanes, a former member of Azure Power's Board of Directors, with violations of the Foreign Corrupt Practices Act for his alleged role in the bribery scheme. According to the SEC, Cabanes facilitated the authorization of bribes both within the United States and internationally.
The Ministry of Law and Justice's letter, dated February 25, requests the Ahmedabad court to deliver the SEC's summons to Gautam Adani or his legal representative. The summons, issued under the Hague Convention, requires Adani to appear in the United States court. Failure to comply with the summons could lead to further legal complications, though it does not inherently pose a risk of extradition unless a U.S. court issues arrest warrants.
The Adani Group has firmly denied the allegations, describing them as "baseless" and asserting that they are linked to a single contract of Adani Green Energy, representing approximately 10% of its business. The group has stated its intention to pursue all possible legal remedies to challenge the charges.
These developments have attracted significant attention, given Gautam Adani's prominent position in the business community. Ranked as the 22nd richest individual globally, with a fortune estimated at $69.8 billion, Adani's business ventures span various sectors, including energy, infrastructure, and logistics.