The US Securities and Exchange Commission has charged Gautam Adani, Sagar Adani, and Cyril Cabanes in connection with an alleged bribery scheme tied to a multi-billion-dollar solar energy project. The Adani Group has strongly denied the allegations, terming them baseless
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The US Securities and Exchange Commission (SEC) has charged Gautam Adani, Chairman of the Adani Group, along with Sagar Adani and Cyril Cabanes, a former executive of Azure Power Global Ltd., for their alleged involvement in a bribery scheme linked to a multi-billion-dollar solar energy project.
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According to ANI, the SEC’s complaint alleges that Gautam and Sagar Adani orchestrated a scheme to pay or promise bribes to Indian government officials to secure above-market-rate energy purchase commitments. This scheme reportedly enabled Adani Green and Azure Power to capitalise on a massive solar energy project awarded by the Indian government.
The SEC stated that Adani Green raised over USD 175 million from US investors during the alleged misconduct, while Azure Power's stock was actively traded on the New York Stock Exchange. Cyril Cabanes, who served on Azure Power’s Board of Directors, was also charged under the Foreign Corrupt Practices Act (FCPA) for allegedly facilitating and authorising bribes both in the United States and abroad.
Sanjay Wadhwa, Acting Director of the SEC's Division of Enforcement, said, “As alleged, Gautam and Sagar Adani induced U.S. investors to buy Adani Green bonds through a process that falsely claimed the company had a strong anti-bribery compliance programme and that its senior management had not and would not engage in bribery.” Wadhwa emphasised that the SEC would continue to hold corporate executives accountable for violating securities laws.
The SEC's complaint seeks permanent injunctions, civil penalties, and bans on both Gautam and Sagar Adani from serving as officers or directors. Similarly, Cyril Cabanes faces a permanent injunction, civil penalties, and a bar from holding similar positions. The case was filed in the US District Court for the Eastern District of New York.
Additionally, the US Attorney’s Office for the Eastern District of New York unsealed criminal charges against Gautam Adani and other executives linked to the alleged bribery scheme.
Responding to the allegations, the Adani Group issued a strong denial. A spokesperson stated, “The charges made by the US Department of Justice and the SEC against Adani Green directors are baseless. We will take all legal recourse to address these allegations.” The group also highlighted the presumption of innocence, as noted by the US Department of Justice itself.
Following these developments, Adani Green Energy informed stock exchanges that its subsidiaries have postponed their planned US dollar-denominated bond offerings.
This case has brought significant attention to the Adani Group’s operations and has raised questions about corporate governance in global markets, ANI reports.
(With inputs from ANI)
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