US Securities and Exchange Commission Sues Indian Billionaire Gautam Adani Over Bribery Allegations
US Securities and Exchange Commission Issues Summons to Indian Billionaire
The U.S. Securities and Exchange Commission (SEC) has issued a summons to Indian billionaire Gautam Adani, who is facing bribery allegations related to a federal indictment against him. According to a court filing, the SEC is suing Adani, the head of the Adani Group, and his nephew Sagar Adani, alleging they engaged in hundreds of millions of dollars in bribes to help an Adani company while "falsely touting the company’s compliance with antibribery principles and laws in connection with a $750 million bond offering."
Summons Requires an Answer Within 21 Days
The summons requires an answer within 21 days, according to the filing dated Wednesday in federal court in the Eastern District of New York. The SEC suit seeks unspecified monetary penalties and restrictions on the Adanis from serving as officers of listed companies.
Adani Group Denies Criminal Charges
Adani Group representatives did not immediately respond to a Reuters request for comment on Sunday. The group has denied the criminal charges as "baseless." The group’s CFO said the indictment is linked to one contract of Adani Green Energy that makes up some 10% of its business, and that no other firms in the conglomerate were accused of wrongdoing.
Federal Prosecutors Issue Arrest Warrants
Federal prosecutors issued arrest warrants for Gautam and Sagar Adani, alleging they participated in a $265 million scheme to bribe Indian officials to secure power-supply deals. Authorities said Adani and seven other defendants, including his nephew Sagar, agreed to bribe Indian government officials to obtain contracts expected to yield $2 billion of profit over 20 years, and develop India’s largest solar power plant project.
Crisis Hits Adani Group for Second Time in Two Years
The crisis is the second in two years to hit the ports-to-power conglomerate founded by Adani, 62, one of the world’s richest people. The fallout was felt immediately, as billions of dollars were wiped off the market value of Adani Group companies and Kenya’s president canceled a massive airport project with the group.
FAQs
- What are the allegations against Gautam Adani and Sagar Adani?
The SEC is alleging that they engaged in hundreds of millions of dollars in bribes to help an Adani company while "falsely touting the company’s compliance with antibribery principles and laws in connection with a $750 million bond offering." - What are the consequences of the allegations?
The SEC suit seeks unspecified monetary penalties and restrictions on the Adanis from serving as officers of listed companies. - How has Adani Group responded to the allegations?
Adani Group has denied the criminal charges as "baseless."