Adani Group Chairman Gautam Adani on Saturday, November 30, responded to the alleged bribery and fraud allegations against the conglomerate, saying that the legal matter involving the US Department of Justice is a challenge which the Group has faced “not for the first time”.
“As most of you would have read, less than two weeks back, we faced a set of allegations from the US about compliance practices at Adani Green Energy. This is not the first time we have faced such challenges. 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,” said Adani said at the 51st Gem and Jewellery Awards in Rajasthan’s Jaipur.
On November 20, US prosecutors alleged that $250 million in bribes were paid to Indian officials to get favourable terms on solar power contracts won by Adani Green Energy Ltd and Azure Power Global Ltd, a New Delhi-headquartered firm.
However, the Adani Group has dismissed the charges as “baseless”.
“The allegations made by the US Department of Justice and the US Securities and Exchange Commission against directors of Adani Green are baseless and denied,” a spokesperson of the business conglomerate said on November 21.
Whereas, India on Friday said it is a legal matter involving private firms and certain individuals and the US Department of Justice.
“This is a legal matter involving private firms and individuals and the US Department of Justice. There are established procedures and legal avenues in such cases, which we believe would be followed,” said Ministry of External Affairs (MEA) spokesperson Randhir Jaiswal.
Gautam Adani also addressed allegations by Hindenburg Research against the conglomerate in January 2023. He claimed the allegations targeted the company’s financial stability, pushing them towards political controversy.
“In January last year, just as we were getting ready to launch our Follow-on Public Offering. We faced a short-selling attack initiated from abroad. This was not a typical financial strike; it was a double hit-targeting our financial stability and pulling us into a political controversy. All of this was further amplified by certain media with vested interests,” Adani said.
However, according to Adani, the Hindenburg allegations have not affected the financials of the group.
“But even in the face of such adversity, our commitment to our principles remained strong. After successfully raising ₹20,000 crore from India’s largest-ever FPO, we made the extraordinary decision to return the proceeds,” Adani stated.
“We then further demonstrated our resilience by raising capital from several international sources and proactively reducing our Debt to EBITDA ratio to below 2.5 times, an unmatched metric in the global infrastructure space. Moreover, our all-time record financial results in the same year showcased our commitment to operational excellence. Not a single Indian or foreign credit rating agency downgraded us,” he said.
“Finally, the Supreme Court of India’s affirmation of our actions validated our approach,” he added.
