Promises to take legal action

Responding to the allegations, the Adani Group released an official statement on Thursday calling the allegations “baseless”. The company has promised to seek all possible legal remedies.

“As said by US Department of Justice itself, “the charges in the indictment are allegations and defendants are presumed innocent unless and until proven guilty.” All possible legal action will be sought, the company says.

Adani Group reaffirms commitment to governance and transparency

The Adani Group has reiterated its commitment to maintaining the highest standards of governance, transparency and compliance.

“We assure our stakeholders, partners and employees that we are a law-abiding organization that fully complies with all laws,” the statement said.

The charges by US authorities involve not only Adani and his associates, but also Azure Power Global executives and three former employees of a Canadian pension fund (CDPQ).

The charges involve hiding information from American investors

US authorities allege that the alleged bribery scheme involved the withholding of critical information from US investors and financial institutions.

During the current period, the Adani Group is said to have raised billions of dollars for its renewable energy projects.

The SEC’s civil charges include securities fraud and wire fraud conspiracy, while criminal charges filed by the US Attorney’s Office for the Eastern District of New York include violations of the Foreign Corrupt Practices Act.

Prosecutions could rekindle concerns about corporate governance

The indictment could revive fears about corporate governance and investor confidence in the Adani Group.

This follows a recent recovery from Hindenburg Research’s 2023 allegations, which accuse the conglomerate of stock manipulation and accounting fraud.

The SEC’s complaint seeks permanent injunctions, civil penalties and bars Adani executives from serving as officers or directors of public companies.

Meanwhile, US criminal charges could lead to extradition requests for the defendants, who mostly live in India.

Adani Group shares fall on news of prosecution

Following the news of the indictment, Adani Group shares plummeted by up to 20%, wiping Rs 2.25 lakh crore from the market capitalization of group companies.

The investigation mainly focuses on Adani Green Energy Ltd. and another company’s contract to provide another 12 gigawatts of solar power Indian Govt.

This is one of the worst trading days for the conglomerate since January 25, 2023, when it was embroiled in a similar crisis following allegations by Hindenburg Research.