US SEC summons Adani, nephew in bribery case
Adani Group founder and chairman Gautam Adani and his nephew Sagar have been summoned to explain their stand on the US Securities and Exchange Commission’s (SEC) allegation of paying $265 million (Rs 2,200 crore) in bribes to secure lucrative solar power contracts.
Summons have been sent to Adani’s Shantivan Farm residence in Ahmedabad and his nephew Sagar’s Bodakdev residence in the same city requiring a reply within 21 days.
“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 a November 21 notice issued through the New York Eastern District Court.
“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.
Gautam Adani, 62, and seven other defendants, including his nephew Sagar, who is a director at the group’s renewable energy unit Adani Green Energy, allegedly agreed to pay about $265 million in bribes to Indian government officials between 2020 and 2024 to secure beneficial solar energy supply contracts on terms that expected to yield $2 billion of profit over 20 years, according to an indictment unsealed in a New York court on Wednesday.
Separate from the indictment brought by the US Department of Justice, the US SEC has also charged the two and Cyril Cabanes, an executive of Azure Power Global, for “conduct arising out of a massive bribery scheme”.
Denying allegations, the ports-to-energy conglomerate said it would seek all possible legal resources.
“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,” it said.
An indictment in the US is basically a formal written allegation originating with a prosecutor and issued by a grand jury against a party charged with a crime. A person indicted is given a formal notice to reply.
That person or persons can then hire a defence lawyer to defend.
Prosecutors said the investigation started in 2022 and found the inquiry obstructed.
They also alleged that the Adani Group raised $2 billion in loans and bonds, including from US firms, on the backs of false and misleading statements related to the firm’s anti-bribery practices and policies, as well as reports of the bribery probe.
Meanwhile, the conglomerate’s CFO Jugeshinder Robbie Singh today said none of the group portfolio companies, comprising 11 listed firms, have been accused of any wrongdoing.
In a post on X, he said the group would make a detailed comment on the US indictment once it gets counsel approvals.
