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Gautam Adani, nephew Sagar Adani summoned by US SEC in $265 million bribery case

Gautam Adani, nephew Sagar Adani summoned by US SEC in $265 million bribery case

TOI Business Desk / TIMESOFINDIA.COM / Nov 23, 2024, 14:58 IST

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Gautam Adani and Sagar Adani have been summoned to respond to allegations of bribery in US. The US SEC alleges they paid bribes to secure solar energy contracts in India.

Gautam Adani, nephew Sagar Adani summoned by US SEC in $265 million bribery case

Gautam Adani and seven other defendants allegedly consented to pay approximately $265 million in bribes.

Gautam Adani, the founder and chairman of Adani group, along with his nephew Sagar Adani, have received summons regarding the US Securities and Exchange Commission's (SEC) claims about paying $265 million (Rs 2,200 crore) in bribes for obtaining profitable solar power contracts.
A US indictment represents a formal written accusation initiated by a prosecutor and issued via a grand jury against an accused party. The accused receives formal notification to respond and may engage legal representation.
The summons were delivered to their respective residences in Ahmedabad - Gautam Adani's Shantivan Farm and Sagar Adani’s Bodakdev home - requiring a response to SEC within 21 days.
"Within 21 days after service of this summons on you (not counting the day you received it)...you must serve on the plaintiff (SEC) an answer to the attached complaint or a motion under Rule 12 of the Federal Rules of Civil Procedure," a November 21 notice issued through the New York Eastern District Court said according to a PTI report.

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"If you fail to respond, judgment by default will be entered against you for the relief demanded in the complaint. You also must file your answer or motion with the court," the notice continued.
According to an indictment revealed in a New York court on Wednesday, Gautam Adani, aged 62, and seven other defendants, including his nephew Sagar Adani, a director at Adani Green Energy Ltd, allegedly consented to pay approximately $265 million in bribes to Indian government officials between 2020 and 2024 to secure beneficial solar energy supply contracts, anticipated to generate $2 billion in profit over 20 years.

Additionally, the US SEC has filed charges against the two individuals and Cyril Cabanes, an Azure Power Global executive, regarding "conduct arising out of a massive bribery scheme", separate from the US Department of Justice indictment.
Also Read | Adani US indictment: How the bribery drama allegedly unfolded
The diversified business group has rejected these allegations and indicated its intention to pursue all available legal options.
"The Adani Group has always upheld and is steadfastly committed to maintaining the highest standards of governance, transparency and regulatory compliance across all jurisdictions of its operations. We assure our stakeholders, partners and employees that we are a law-abiding organisation fully compliant with all laws."
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The investigation commenced in 2022, with prosecutors noting interference in their inquiry. They further assert that the Adani Group obtained USD 2 billion in loans and bonds, including from US organisations, based on incorrect and misleading statements about their anti-bribery practices and policies, alongside reports of the bribery investigation.
"As alleged, the defendants orchestrated an elaborate scheme to bribe Indian government officials to secure contracts worth billions of dollars and... lied about the bribery scheme as they sought to raise capital from U.S. and international investors," US Attorney Breon Peace declared in Wednesday's statement announcing the charges.
"My office is committed to rooting out corruption in the international marketplace and protecting investors from those who seek to enrich themselves at the expense of the integrity of our financial markets."

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TOI Business Desk

The TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world.

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