Adani Group founder denies US bribery allegations and vows legal action

Gautam Adani – the founder of the Adani Group – broke his silence on Saturday on the bribery charges brought against him by the US authorities.

Speaking at an awards ceremony in Jaipur, Adani addressed the $265 million bribery allegation that accuses him and several of his associates of paying bribes to win contracts to supply energy in India.

The United States also alleges that the Adani Group misled American investors during fundraising activities.

In its first public response to the allegations, Adani dismissed the allegations as “baseless”, reiterating the Adani Group’s commitment to “world-class regulatory compliance”. The conglomerate, which includes industries from ports to power, has faced increased scrutiny following the indictment, marking the second significant crisis for the business empire in just two years.

“Less than two weeks ago, we faced a set of allegations from the US regarding compliance practices at Adani Green Energy. This is not the first time we have faced such challenges,” Adani said, reflecting on the ongoing control.

His statement comes amid a wider political and economic storm in India, with some states reviewing their ties with the conglomerate and international investors such as France’s TotalEnergies cutting off investment.

US authorities have named Gautam Adani, his nephew and Sagar Adani chief executive, and Vneet S. Jaain, managing director of Adani Green Energy, as key figures in the bribery scheme. According to the indictment, they orchestrated illegal payments to secure power supply contracts in India, further accusing the group of defrauding US investors during fundraising efforts.

Despite the seriousness of the allegations, the Adani Group has strongly denied the allegations, vowing to explore all legal avenues in response. Adani, addressing the crowd in Jaipur, expressed his resolve: “What I can tell you is that every attack makes us stronger and every obstacle becomes a stepping stone for a more resilient Adani Group.”

The allegations have already had significant financial repercussions. Adani Group’s listed companies have seen a staggering $34 billion wiped from their combined market value following the allegations. However, the group’s shares have since recovered, buoyed by renewed support from partners and investors who have rallied behind the conglomerate.

On the political front, the Indian government has distanced itself from the case, with officials confirming that no formal request has been received from US authorities regarding the allegations.

The controversy, however, has sparked political debate in the Indian parliament, with some lawmakers calling for investigations into the matter.