Adani Group found itself embroiled in a controversy involving allegations made by the US Department of Justice (DoJ) and the US Securities and Exchange Commission (SEC) against directors of its subsidiary company, Adani Green. The group has categorically denied these allegations, stating that they are baseless and that all possible legal recourse will be sought.
Jugeshinder Robbie Singh, the CFO of Adani Group, addressed the issue, stating, "You would have seen a lot of news in the last 2 days regarding Adani Group matters. This specifically relates to one contract of Adani Green, which is roughly 10% of the overall business of Adani Green."
He added that the group became aware of the specificity of this two days ago and disclosed the risk factors in their February 2024 144a offering circular.
Singh also clarified that none of the 11 public companies in the Adani Group's portfolio are subject to indictment, meaning they are not defendants in any legal proceedings in the recent DoJ lawyer filings to a court in New York City.
Adani Group responds to allegations
The CFO emphasized that none of the issuers, that is, companies in their portfolio or specific issuers that are subsidiaries of the public companies, are accused of any wrongdoing in the said legal filing. He addressed the media's role in the controversy, stating, "There is a lot of news and reports that will try to pick unrelated items and create a headline."
He urged patience, stating that the group will respond in fullness of time once they review in detail the matter as presented in the legal filing.
Previously, Adani Group spokesperson reiterated the group's commitment to maintaining the highest standards of governance, transparency, and regulatory compliance across all jurisdictions of its operations. The spokesperson assured stakeholders, partners, and employees that the Adani Group is a law-abiding organization, fully compliant with all laws.
The controversy has also drawn political attention. BJP leader Amit Malviya called it a mere abuse of jurisdiction and suggested that an Indian court could similarly accuse American firms of bribing US government officials to deny access to Indian markets.
He also pointed out that the states involved in the alleged scandal are those ruled by the opposition and its allies.
"Since the power was costly, the SDCs were not willing to buy. Therefore, the Adanis (in collusion with Azure Power; a US firm) paid the equivalent of US $265 million to SDCs based in Odisha (BJD-ruled), Tamil Nadu (DMK), Chattisgarh (Congress), and Andhra Pradesh (YSRCP) between July 21 and Feb 22 (by far the largest to AP)," Malviya noted.
"All the states mentioned here were Opposition-ruled during that time. So, before you pontificate, answer on the bribes the Congress and its allies accepted," he added.
