US probes Adani Group: As reported by Bloomberg, US prosecutors have heightened their scrutiny of India’s Adani Group, concentrating on potential bribery and the actions of billionaire founder Gautam Adani, according to informed sources.
The inquiry, spearheaded by the US Attorney’s Office for the Eastern District of New York and the Justice Department’s fraud unit in Washington, is investigating whether any Adani entity or affiliated individuals engaged in offering payments to Indian officials for advantageous treatment regarding an energy venture. Additionally, the investigation encompasses Indian renewable energy firm Azure Power Global Ltd, as stated in the report.
The Adani Group stated, “There is no investigation against our chairman to our knowledge. As a business entity committed to upholding the utmost standards of governance, we adhere to and fully comply with anti-corruption and anti-bribery regulations in India and worldwide,” as reported by Bloomberg.
Officials from the Justice Department in Brooklyn and Washington declined to provide any comments. Azure did not respond to requests for statements.
Following accusations by short-seller Hindenburg Research last year, alleging stock price manipulation and accounting fraud within the Adani conglomerate, this investigation has been initiated. The group has vehemently refuted these claims, and its stock prices have substantially rebounded from the initial decline, according to the report. – US probes Adani Group
Despite the ongoing investigation, the US government has maintained collaboration with Adani Group entities. In the previous year, the US International Development Finance Corp. extended $553 million in financing to an Adani unit for a port terminal project in Sri Lanka’s capital, intending to counter China’s influence in the area, according to the report.
The Adani investigation has progressed to an advanced stage, allowing the Justice Department to conduct inquiries without informing the involved parties. Gautam Adani, his company, and Azure have not faced accusations of wrongdoing by the Justice Department, and investigations may not necessarily result in prosecutions, as indicated in the report.
Under the Foreign Corrupt Practices Act (FCPA), US prosecutors are empowered to investigate foreign corruption allegations if there are specific connections to American investors or markets. Although the Adani Group does not trade in the US, it does have American investors.
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As the investigation progresses, it underscores the geopolitical ramifications associated with the Adani Group, which is intricately linked with the Indian economy and closely monitored by the White House as a potential ally in countering China’s influence, according to the report.
