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What are the allegations against Adani in the US court? Now a new statement has come out from the White House on what effect these allegations may have on India-US relations.
After the allegations leveled by the American court against Indian businessman Gautam Adani, the fear of increasing tension in India-US relations has increased. At present India and America are strategic partners. In such a situation, both the countries are taking bold steps on this issue. The administration of outgoing US President Joe Biden has created a big challenge for the newly elected President Donald Trump by making such allegations against the Indian businessman. Let us now tell you what allegations have been made against Gautam Adani in the American court and after this, what is the latest statement of the American White House?
Accusations against Gautam Adani
Industrialist Gautam Adani has been accused by US prosecutors of allegedly paying bribes of $265 million (about Rs 2,200 crore) to Indian officials in exchange for favorable terms to win solar power contracts in India. The US Justice Department has charged Adani, India’s second-richest man, and seven others, including his nephew Sagar Adani, with bribing officials in Andhra Pradesh and Odisha to buy expensive solar power. However, the names of the officers have not been disclosed. These projects are expected to generate profits of more than $2 billion for the group over 20 years.
America starts investigation in 2022
Prosecutors said the US began investigating the case in 2022. He alleged that the group raised $2 billion in loans and bonds from US companies, among other companies, by providing false and misleading information about the company’s anti-bribery activities and policies. Besides, the group also did not give correct information about the bribery investigation. US law allows foreign countries to pursue corruption charges in cases involving their investors or markets. Meanwhile, Adani Group has denied all the allegations and termed them baseless.
There are allegations against these companies of Adani
According to the allegations, Adani Green Energy, the green energy arm of the Adani Group, won the bid to supply 8,000 MW of power in 2021 in a bid invited by public sector Solar Energy Corporation of India (SECI). In this tender, New Delhi’s Azure Power won the bid to supply four gigawatts. Along with Azure Power, executives from Canada’s public pension fund CDPQ are also named in the case. According to the US Attorney’s Office, SECI failed to find a buyer for the power at the price agreed with Adani and Azure. Adani personally met government officials in 2021 and 2022 and offered them bribes to enter into power sale agreements with SECI. Following the promise of bribes, power distribution companies in Andhra Pradesh, Odisha, Tamil Nadu and Chhattisgarh settled with SECI.
officials were bribed
US prosecutors have alleged that an Andhra Pradesh state government official was paid Rs 25 lakh per MW. The state then agreed to purchase 7,000 megawatts (7 GW) of solar power from SECI. Odisha also purchased 500 MW electricity in the same manner. Adani Group has denied all the allegations and termed them baseless. The group canceled Adani Green Energy Ltd’s $600 million bond. The issue was subscribed thrice before the matter came to light. A spokesperson for the group said in a statement that the allegations made against Adani Green directors by the US Department of Justice and the US Securities and Exchange Commission are baseless. Despite this news, a huge fall in the shares of Adani Group is being seen in the stock market.
loss of 26 billion dollars
After these allegations, there has been a loss of about $ 26 billion (Rs 2.19 lakh crore) in the market valuation of ten listed companies of Adani Group. This is more than double the decline in market valuations since the Hindenburg Report in January 2023. Prosecutors have named Adani, 62, and his nephew Sagar R, two executives of Adani Green Energy Ltd. Adani and CEO Vineet S. In the case, Jain has been accused of conspiring to cheat investors. These three are accused of carrying out the plan with the help of five other accused. He faces charges under the Foreign Corrupt Activities Act (FCPA) and obstruction of justice.
Personal allegations against Adani
Personal allegations have also been made against Gautam Adani in this case. Prosecutors have claimed that Adani personally met the government official several times. According to prosecutors, the defendants had prepared a large number of documents in this regard. Defendant Rupesh Aggarwal also prepared an analysis of the bribery scheme using Power Point and Excel. The indictment charges Jain as well as Gautam and Sagar Adani with conspiracy and securities fraud. Additionally, Ranjit Gupta and Agarwal, former executives of another publicly traded renewable energy company, have been charged with FCPA violations. Agarwal and three former employees of the Canadian institutional investor—Cyril Cabans, Saurabh Agarwal and Deepak Malhotra—have been charged with obstruction of justice and FCPA violations.
White House statement
After this case, now the ‘White House’, the official residence and office of the US President, has said that the relations between India and America are on a strong foundation. But he is confident of handling the situation arising out of bribery allegations against Indian billionaire Gautam Adani. White House press secretary Karine Jean-Pierre said at her daily press conference on Thursday that the administration is aware of the allegations against Adani. Pierre said, “Obviously we are aware of these allegations and I encourage you to contact the SEC (Securities and Exchange Commission) and DOG (Department of Justice) to get detailed information about the allegations against Adani Group.” I do.” “We believe that the US-India relationship rests on a very strong foundation based on the ties between our peoples and cooperation on a range of global issues,” he said. “We believe that and we rely on it,” the press secretary said. We will resolve this issue the same way we have resolved other issues.”