New Delhi: Stock exchanges have sought clarification on violation of disclosure norms by Adani Group entities regarding the alleged bribery case in the US and subsequent cancellation of Kenya’s airport expansion deal.
In its response to the case in the US, Adani Group firms Thursday had said “there are no allegations made against the company”.
On clarification with regard to Kenya cancelling airport expansion and energy deals following the US bribery and fraud indictments, the group is yet to respond to the bourses.
While there was no word from Sebi officials, experts pointed out the regulator will have to definitely look into it if there are any disclosure and other violations and take necessary action.
Billionaire Gautam Adani, his nephew Sagar Adani, and others have been charged by US prosecutors with allegedly being part of an elaborate scheme to pay $265 million (about Rs 2,200 crore) bribe to Indian officials in exchange for favourable terms for solar power contracts.
The United States Department of Justice and the US Securities and Exchange Commission (SEC) have issued a criminal indictment and brought a civil complaint, respectively, in the US District Court for the Eastern District of New York, against Gautam Adani and Sagar Adani.
Adani Group Thursday denied charges of paying bribes to secure favourable terms for solar power contracts, saying the allegations by US prosecutors are baseless and the conglomerate is compliant with all laws. It said all possible legal recourse will be sought.
The bombshell allegations may have a widespread fallout ranging from reputational risk to the conglomerate, inability to raise funds from the US market and the billionaire being forced to restrict his overseas travels to opening a political pandora’s box that will give the Opposition another tool to target the government just as Parliament meets for the winter session, starting Monday.
Adani, India’s second-richest man, and seven others including his nephew Sagar, have been charged by the US Department of Justice with paying bribes to unidentified officials in Andhra Pradesh and Odisha governments to buy expensive solar power, potentially earning more than $2 billion in profit over 20 years.
Prosecutors said the US started an investigation in 2022. They alleged the group raised $2 billion in loans and bonds, including from US firms, on the backs of false and misleading statements.
PTI