The Adani Group has responded strongly to the bribery charges filed by US prosecutors, calling them "baseless" and reiterating its commitment to integrity and compliance.
The group, led by chairman Gautam Adani, has categorically denied any involvement in bribery and securities fraud, dismissing the accusations as unfounded.
In a statement issued following the charges, the Adani Group emphasised that it operates with the highest standards of governance, transparency, and regulatory compliance.
It assured its stakeholders, partners, and employees that the group is fully compliant with all relevant laws and regulations. The statement also referenced the US Department of Justice's reminder that the charges are only allegations, and that the accused are presumed innocent until proven guilty.
The group expressed its intention to explore all legal avenues to challenge these charges, emphasising its resolve to defend its reputation and integrity in the face of these serious allegations.
"As stated by the US Department of Justice itself, the charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty," the spokesperson added.
The timing of the allegations has led to increased volatility in the market, with Adani Enterprises' stock taking a significant hit. On Thursday, the stock saw a sharp decline of 23%, contributing to a dramatic fall in the group’s overall market capitalization, which lost over Rs 2 lakh crore in value.
This drop represents the worst trading day for the conglomerate since the Hindenburg Research report in January 2023, which had previously accused the group of stock manipulation and fraud.
The bribery case at the heart of the accusations involves claims that Gautam Adani, his nephew Sagar Adani, and six others allegedly paid Rs 2,029 crore (approximately $265 million) in bribes between 2020 and 2024.
According to US prosecutors, the bribes were paid to Indian government officials to secure solar power contracts with state-owned electricity distribution companies.
Arrest warrants have been issued in the US for both Gautam Adani and his nephew, Sagar, with plans to involve foreign law enforcement to execute the warrants.
The alleged bribes were reportedly aimed at ensuring profits of up to $2 billion from the energy projects, which involved both the Adani Group and US-based Azure Power.
The case also details the use of encrypted communications, code names like "Numero Uno" for Gautam Adani, and secret agreements to execute the bribery plan.
The timeline of these events coincides with the release of the Hindenburg Research report, which had accused the Adani Group of manipulating its stock prices and committing fraud. The fallout from that report led to a significant loss in the group’s market value, amounting to $150 billion.
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