Senior advocate and former Attorney General Mukul Rohatgi recently spoke on allegations against Gautam Adani, chairman of the Adani Group, his nephew Sagar Adani, and others. The allegations arise from a criminal indictment and civil complaint filed by US prosecutors and regulators, which has gained massive media attention and public debate. Speaking to the media on Wednesday, Rohatgi clarified the accusations and shared his personal views on the matter.
No Bribery Charges Against Gautam or Sagar Adani
Rohatgi firmly stated that neither Gautam Adani nor Sagar Adani have been implicated in bribery or obstruction of justice under the US Foreign Corrupt Practices Act (FCPA). He pointed out that the indictment filed by the US Department of Justice (DoJ) does not name the Adanis in counts related to bribery or obstruction.
“Count 1 and Count 5 of the US indictment, which pertain to conspiracy to violate the FCPA and obstruction of justice, respectively, do not mention Gautam Adani or his nephew, Sagar Adani,” Rohatgi underscored. He clarified that other people, including a foreign party, are named in these counts and will respond accordingly. However, the Adanis, he clarified, are not linked to these allegations.
Details of the US Indictment
The indictment filed in the United States District Court for the Eastern District of New York alleges that the Adani Group and its executives conspired to execute a $265 million bribery scheme to win Indian solar energy contracts. These contracts would be expected to make the profits amount to $2 billion over two decades.
While Gautam and Sagar Adani have been named in allegations involving securities fraud conspiracy, wire fraud conspiracy, and securities fraud, Rohatgi said that these are different from FCPA-related charges. He also pointed out the gravity of the FCPA violations compared to the other accusations.
Lack of Detail in Bribery Allegations
Rohatagi also pointed out the indictment had no specific evidence of bribery. He further stated there was no presence of actual instances such as persons bribed, departments concerned, and how the bribery was done.
“When you indict somebody, you need to be specific,” Rohatgi said. “Here, I don’t see any details of who was bribed, how, or from which department. This is raising questions on the credibility of these allegations.”
Adani Group on Allegations
Acknowledging his past professional associations with the Adani Group, Rohatgi clarified his comments were his personal views but not the official stance by the company. He professed confidence that Gautam Adani, Sagar Adani, and others were named in the indictment response appropriately, perhaps with expert guidance from international legal pundits.
The Adani Group has been denying the allegations that are deemed “baseless.” Under the SEBI regulations, Adani Green Energy Ltd. (AGEL) has issued a formal response to the stock exchanges against media reports regarding bribery charges against Gautam Adani and Sagar Adani. The company clarifies that the allegations have to do with securities fraud and wire fraud and not FCPA.
The AGEL further pointed out that media reports have made mistakes by claiming that Gautam or Sagar Adani has been accused of FCPA violations. It reaffirmed the group’s resolve to deal with the charges appropriately in legal circles. Background of the Charges
Fresh allegations have cropped up just at a time when Adani Group already faces serious questions post the January 2023 Hindenburg Research report, which was accused of “brazen accounting fraud” and “stock manipulation.” This brought about the selling off of $140 billion of Adani stocks, besides cancelling a proposed ₹20,000-crore share sale.
The US Securities and Exchange Commission has charged the Adani Group and executive Cyril Cabanes of Azure Power Global with securities fraud. It has accused the company of providing false statements in securing loans and bonds amounting to $2 billion and misrepresenting to US investors.
The controversy has brought into the spotlight once again concerns regarding the governance practices and compliance standards of the Adani Group, which is involved in diversified sectors such as energy, infrastructure, and logistics. Though the company has outrightly denied the charges, the controversy has seriously affected its market reputation and financial stability.
The group has repeatedly asserted that the Hindenburg report and its subsequent allegations are part of a conspiracy to malign it. Citing the Hindenburg report as “unresearched” and “maliciously mischievous,” the Adani Group has presented its practices as transparent and regulatory compliant. Mukul Rohatgi and the Debate
Rohatgi’s clarification has brought some perspective to the complex and high-stakes case. As a former Attorney General and senior advocate, his views carry weight in legal and public discourse. While he acknowledged his previous appearances for the Adani Group in some cases, he emphasized the independence of his remarks.
These are my personal views that I have mentioned,” Rohatgi said. “The Adanis will respond to this charge sheet in the manner they deem appropriate. They will also address the stock exchange as required. I have not vetted any of these communications.”
As the Adani Group is facing multiple cases across both domestic and international courts, the result of these charges will have a lot at stake. While the group again reiterated its commitment to being compliant and transparent, scrutiny in this case raises more questions about the difficulty with which large conglomerates work through global regulatory systems.
For now, however, it is a bit of an attempt to demarcate fact from speculation on the basis of evidence-driven reporting and legal precision. As the legal process proceeds, the Adani Group will have to address each of the allegations head-on, protecting its reputation as well as its operations around the world.
This explanation, detailed and very human, simplifies the complex allegations of law and underscores the fact that there should be clarity and transparency in handling such high-profile cases.
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