The White House has expressed unwavering confidence in the robust foundation of India-US relations despite bribery allegations levelled against industrialist Gautam Adani and his associates.
The charges, involving a $265 million scheme to secure Indian state energy contracts, have sent ripples through financial and political circles.
Speaking at a press briefing, White House Press Secretary Karine Jean-Pierre acknowledged awareness of the accusations while reiterating the administration's belief in the enduring strength of bilateral ties.
"What I will say is, on the US and India relationship, we believe that it stands on an extremely strong foundation, anchored in ties between our people and cooperation across a full range of global issues," she said.
Jean-Pierre further expressed confidence that the two nations would navigate the issue effectively, as they have in past challenges.
Bribery allegations against Adani group
Gautam Adani, 62, chairman of the Adani Group, along with his nephew Sagar Adani and other executives, was indicted in New York for orchestrating what prosecutors described as a multibillion-dollar fraud and bribery scheme.
The charges include conspiracy to commit securities and wire fraud, as well as substantive securities fraud.
According to US authorities, the accused paid over $250 million in bribes between 2020 and 2024 to secure solar energy contracts projected to yield $2 billion in post-tax profits over 20 years.
The scheme allegedly involved executives from Adani Green Energy Ltd and Cyril Cabanes of Azure Power Global Ltd.
The US Securities and Exchange Commission (SEC) claims the defendants misled investors to obtain funds from US-based and global financial institutions.
During the period, Adani Green reportedly raised over $175 million from American investors, while Azure Power’s stock traded on the New York Stock Exchange.
Adani group denies charges
Responding to the allegations, the Adani Group has categorically denied any wrongdoing, labelling the charges "baseless."
However, the denial did little to quell market panic, as shares of Adani-related companies plummeted by over 23 per cent on Thursday.
The SEC and the Department of Justice (DOJ) are pursuing severe penalties, including permanent injunctions, civil fines, and bans on implicated executives from holding positions in publicly traded companies.
The SEC alleges that the bribery scheme was intended to exploit multi-billion-dollar solar energy projects awarded by the Indian government. Federal prosecutors assert the scheme aimed to circumvent fair competition, undermining investor confidence.
India-US relations 'unshaken'
Despite the controversy, the Biden administration downplayed the potential impact on India-US relations.
Jean-Pierre’s statement also cited mutual interests shared by the two nations, reinforcing their ability to withstand challenges and maintain a partnership rooted in cooperation across diverse global issues.
The Adani bribery allegations come as both countries deepen strategic ties, notably in areas such as energy, trade, and technology.
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