DoJ has alleged that between 2020 and 2024, senior executives of Adani Green, Azure Power, and CDPQ (Caisse de dépôt et placement du Québec — a Canadian institutional investor and Azure’s largest shareholder) participated in a scheme to bribe Indian government officials to ensure the execution of lucrative solar energy supply contracts with Indian government entities.
During the same period, senior executives of Adani Green conspired to misrepresent the company’s anti-bribery practices (to US-based investors and international financial institutions) and concealed from those investors and institutions their bribery of Indian government officials to obtain billions of dollars in financing for green energy projects, including the corrupt solar energy supply contracts, the DoJ stated.
Of the five counts in the US DoJ’s indictment, Adani and two other executives have not been charged in Count 1 (appearing on Page 42 of the US DoJ’s Indictment), which the DoJ describes as “Conspiracy to violate FCPA.”
Those charged in Count 1 are Ranjit Gupta, Cyril Cabanes, Saurabh Agarwal, Deepak Malhotra, and Rupesh Agarwal.
Adani and his executives have also not been charged in Count 5 (appearing on Page 51 of the US DoJ’s Indictment), which the DoJ describes as “Conspiracy to obstruct justice.”
Those charged in Count 5 are Cyril Cabanes, Saurabh Agarwal, Deepak Malhotra and Rupesh Agarwal.
Since Gautam Adani, Sagar Adani and Vneet Jaain have not been charged with Counts 1 or 5 (Conspiracy to violate FCPA and Conspiracy to obstruct justice, respectively), they cannot be charged by US authorities on Counts 2, 3 or 4 (Securities fraud conspiracy, wire fraud conspiracy and securities fraud, respectively).
Stock Decline The Adani Group companies have lost about USD 54 billion in market capitalisation since the US indictment.
Credit Rating Downgrades International credit rating agencies, including Moody’s and Fitch, have downgraded their outlook on several Adani firms.
Despite receiving an order book of USD 2 billion for USD 600 million green bonds, Adani Green Energy Ltd withdrew those bonds to safeguard the investors from potential Mark-to-Market Loss.
The DOJ indictment appeared exactly on the day, AGEL launched its bonds.
International Partnerships and Investments TotalEnergies: The French oil major has halted new investments in Adani firms, citing the bribery charges as a significant concern.
TotalEnergies holds investments in Adani Green Energy and Adani Total Gas, and this announced pause indicates a cautious approach amid the legal uncertainties.
US International Development Finance Corporation: The DFC has announced that it is reviewing its USD 550-million port development loan to the Adani-led consortium developing CWIT, a container terminal in Colombo Port.
The agency says it is assessing the implications of the indictments on the project’s integrity and compliance.
GQG Partners: The investment firm has suddenly faced financial setbacks due to its substantial holdings in Adani companies.
Shares in GQG Partners have declined sharply, and while the firm has publicly declared its confidence in the Adani Group’s resilience, it might nevertheless be compelled to review its investments in Adani in light of the legal developments.
Jefferies: The US investment bank, which has been a significant supporter of the Adani Group, is reconsidering its relationship with the group following the bribery charges. This reassessment reflects concerns over reputational risks and compliance issue.
