According to a recent report from Bloomberg News, US authorities are currently delving into potential instances of bribery involving entities associated with the Adani Group, including its founder Gautam Adani, to secure favorable treatment for an energy project in India. The investigation, spearheaded by the US Attorney’s office for the Eastern District of New York alongside the Justice Department’s fraud unit in Washington, is also examining the involvement of Azure Power Global, an Indian renewable energy firm.
“We are not aware of any investigation against our chairman [Gautam Adani],” stated the Adani Group in response to inquiries from Bloomberg News.
Last year, various US authorities commenced an inquiry into the representations made by the Adani Group to its American investors following allegations of stock manipulation raised by Hindenburg Research.
In January of the previous year, American short-seller Hindenburg Research published a report accusing the Adani Group of orchestrating the “largest con in corporate history” through accounting fraud, misuse of tax havens, and money laundering. Although the Adani Group refuted these claims, the report significantly impacted the stock prices of its listed companies, resulting in a loss of $111 billion for investors.
Consequently, a series of petitions were filed in the Supreme Court of India, urging for a court-monitored investigation into these allegations.
In a recent development, the Supreme Court declined to transfer an investigation regarding allegations of round-tripping and money laundering by the Adani Group from the Securities and Exchange Board of India (SEBI) to a Special Investigation Team (SIT).
The verdict, delivered on January 3 by a bench led by Chief Justice DY Chandrachud, highlighted that SEBI had not exhibited any regulatory lapses in handling the case. The bench underscored that the petitioners failed to substantiate claims of bias on the part of the regulator toward the Adani Group.
Furthermore, the bench directed SEBI to conclude its investigation within a stipulated three-month timeframe.
Adding to the complexity of the situation, two sources familiar with the matter informed Bloomberg News last year that the US Securities and Exchange Commission (SEC) has initiated its own investigation into the Adani Group.
Sources: scroll.in