One of the wealthiest people in the world, Gautam Adani, was recently charged with bribery and fraud in a federal court in New York.
According to a representative for the Adani Group, the accusations against Adani Green Energy directors made by the U.S. Securities and Exchange Commission and the U.S. Department of Justice were “baseless and denied.”
Following the indictment, shares of companies in the Adani Group in India fell precipitously, with Adani Green Energy, the company at the core of the accusations, falling 17.9%.
On Thursday, November 21, India’s Adani Group refuted claims of fraud and bribery made by U.S. authorities against Gautam Adani, the group’s chairman, calling the accusations “baseless.”
In order to secure solar energy supply contracts worth over $2 billion in profits, Adani and a number of other defendants are alleged to have paid more than $250 million in bribes to Indian government officials.
As they raised over $3 billion in capital to fund energy contracts, the company’s 62-year-old chair, his nephew Sagar Adani, and fellow executive Vneet Jaain are accused of deceiving American and foreign investors about their company’s adherence to anti-corruption and anti-bribery policies.
“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 spokesperson said in an emailed statement.
They added that “all possible legal recourse will be sought,” following the allegations.
On Thursday, shares of Adani investor GQG Partners also plummeted by about 20%.
How exposed Indian lenders are to Adani Green Energy is a question that investors frequently ask after the charges, according to a note released by Citi analysts on Thursday.
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Lender-specific data may not be very accurate when it comes to fund-based exposure, Citi said, adding that the energy company has borrowings of 630 billion Indian rupees and cumulative charges on assets of 650 billion Indian rupees.
Adani Green Energy canceled plans to raise approximately $600 million through bonds denominated in US dollars in the wake of the indictment charges.
