Controversy-stricken Adani Green Energy released a statement on Wednesday clarifying that Gautam Adani, Sagar Adani, and Vneet Jaain were not charged with FCPA violations, unlike certain media reports. The statement released to the Indian stock exchanges sent Adani Group stock soaring, with Adani Green Energy jumping by at least 9.3 per cent in morning trade.
The clarification specifically called out news articles by Forbes India, CNBC, the Times of India, and Business Today alleging violations under the US Foreign Corrupt Practices Act (FCPA), stating that the “statements are incorrect.”
“Gautam Adani, Sagar Adani and Vneet Jaain have not been charged with any violation of the FCPA in the counts set forth in the indictment of the US DOJ or civil complaint of the US SEC,” read the statement.
Following the announcement, Adani Power jumped by 8 per cent, Adani Ports by 4 per cent, and Adani Energy Solutions by at least 9 per cent. In the Wednesday morning session, benchmark indices Nifty and Sensex both recorded small gains, trading in the green.
Official Adani statement confirms three counts of criminal indictment in DoJ case
The official statement, however, confirmed that the directors were charged on “three counts in the criminal indictment” that comprised “alleged securities fraud conspiracy, alleged wire fraud conspiracy, and alleged securities fraud.”
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Another regulatory statement by the company stressed that the criminal indictment in the case filed by the US Department of Justice (DoJ) “does not specify any quantum of any fine or penalty” against the title “expected financial implications, if any, due to compensation, penalty.”
The company also mentioned the civil complaint filed before the United States District Court Eastern District of New York by the Securities and Exchange Commission (SEC) against Gautam Adani and Sagar Adani. “Pursuant to this civil complaint, some of our directors namely Gautam S. Adani and Sagar R. Adani have been alleged to have violated certain sections of the (US) Securities Act of 1933 and the (US) Securities Act of 1934.” The Adani uncle-nephew duo were also alleged to have aided and abetted Adani Green Energy’s violation of the US Securities Act of 1933 and the Securities Act of 1934, as per the statement.
Leader of Opposition Rahul Gandhi on Wednesday also reiterated his demand for the arrest of industrialist Gautam Adani following his indictment in the US. Gandhi also accused the government of protecting him, while speaking to media outside Parliament. Regarding the official statement by Adani, Gandhi retorted, “You think the Adanis are going to accept the charges. Which world are you living in? Obviously, he is going to deny the charges.”
Indian Parliament proceedings were disrupted for the second day of the winter session with members of the opposition echoing slogans demanding a discussion of the US indictment of Adani. The Lok Sabha was adjourned till noon and the Rajya Sabha for a brief time in light of the protest.