MUMBAI: The US bribery charges against Adani Group relate to a single contract within Adani Green Energy, constituting approximately 10% of its operations, said Adani Group CFO Jugeshinder Robbie Singh on Saturday. Singh emphasised that no other companies within the broader Adani conglomerate are facing allegations of improper conduct. He, however, acknowledged that while the group was aware that something was afoot, it came to know of the “specificity” of the US charges only two days ago.
“None of Adani’s 11 public companies are subject to indictment or are accused of any wrongdoing in the said legal filing,” Singh stated on X. “The allegations in the US indictment relate to “one contract of Adani Green, which is roughly 10% of the overall business of Adani Green”, he said.
On Wednesday, the US indicted Adani Group chairman Gautam Adani along with his nephew and Adani Green executive director Sagar Adani and other entities for deceiving American investors and banks by concealing information about $265 million in bribes paid to Indian govt officials for obtaining lucrative solar power contracts and raising billions of dollars from these institutions. The conglomerate had denied these allegations.
“We were aware that something is afoot,” he said, adding that the company had disclosed as much to investors during its $750 million 2024 bond offering. American investors contributed about $175 million to the total sum, according to Reuters.
However, the US indictment indicated that the bond offering contained inaccurate and misleading statements regarding the corporate governance of Adani Green. It also highlighted Sagar Adani kept track of the bribe payments using his mobile device. Singh said the group will provide a comprehensive response after receiving legal clearance as the matter is currently before the courts.
The US bribery charges are the latest setback for the Adani Group after Hindenburg Research’s damaging report on the conglomerate last year. The US research firm had accused share price manipulation, inappropriate utilisation of offshore tax havens, and accounting fraud.
Following the US indictment, the conglomerate’s listed entities saw a decline in their share prices, while some global banks are contemplating suspending new lending to the group, according to Reuters.