US prosecutors have escalated their investigation into India’s Adani Group, focusing on potential bribery and the conduct of billionaire founder Gautam Adani, according to sources familiar with the matter, as per a report by Bloomberg
The investigation, led by the US Attorney’s Office for the Eastern District of New York and the Justice Department’s fraud unit in Washington, is examining whether an Adani entity or individuals linked to the company were involved in paying officials in India for favourable treatment on an energy project. The probe also extends to Indian renewable energy company Azure Power Global Ltd, the report added.
In a statement, the Adani Group asserted, “We are not aware of any investigation against our chairman. As a business group that operates with the highest standards of governance, we are subject to and fully compliant with anti-corruption and anti-bribery laws in India and other countries,” as quoted by Bloomberg.
Representatives from the Justice Department in Brooklyn and Washington declined to comment. Azure did not respond to requests for comment.
The investigation follows allegations from short-seller Hindenburg Research last year, which claimed that the Adani conglomerate manipulated its stock price and committed accounting fraud. The group has firmly denied these allegations, and its shares have largely recovered from the initial plunge, the report added.
Despite the scrutiny, the US government has continued to work with Adani Group entities. Last year, the US International Development Finance Corp. provided $553 million in financing to an Adani unit for a port terminal in Sri Lanka’s capital, aiming to counter China’s influence in the region, as per the report.
The Adani probe is now at an advanced stage, and the Justice Department can pursue its investigations without notifying the parties involved. Gautam Adani, his company, and Azure have not been charged with wrongdoing by the Justice Department, and investigations do not always lead to prosecutions, according to the report.
The Foreign Corrupt Practices Act (FCPA) allowed US prosecutors to pursue foreign corruption allegations if certain links to American investors or markets exist. Adani Group does not trade in the US but has American investors.
As the investigation unfolds, it highlighted the geopolitical implications surrounding the Adani Group, deeply intertwined with the Indian economy and closely watched by the White House as a potential ally against China’s influence, the report added.
(With Inputs from Bloomberg)
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Published: 16 Mar 2024, 06:40 AM IST