White House on Adani bribery case: Strong ties will help weather the storm
The White House expressed confidence that strong ties will help India and the US navigate the turmoil in the wake of bribery and fraud charges against Indian billionaire Gautam Adani.
White House Press Secretary Karine Jean-Pierre addressed the allegations during a press briefing on Friday, stating that the Biden administration is aware of the charges against Adani, the chairman of Adani Group.
Adani, 62, was indicted in New York along with his nephew Sagar Adani, 30, and other executives for their roles in an alleged multibillion-dollar bribery and fraud scheme to secure lucrative solar energy contracts.
“We are aware of these allegations, and I would have to refer you to the SEC (Securities and Exchange Commission) and DOJ (Department of Justice) about the specifics of those allegations against the Adani Group,” Jean-Pierre said.
Downplaying any potential fallout with India over the bribery scandal, she stated, “What I will say is, on the US and India relationship, we believe that it stands on an extremely strong foundation, anchored in ties between our people and cooperation across a full range of global issues.”
The spokesperson asserted the resilience of India-US bilateral ties, adding, “And so what we believe, and we’re confident about, is that we’ll continue to navigate this issue, as we have with other issues that may have come up.”
Adani and his associates, including executives of Adani Green Energy Ltd and Cyril Cabanes of Azure Power Global Ltd, were charged with conspiracy to commit securities and wire fraud, as well as substantive securities fraud. The DOJ alleges that they orchestrated a scheme to obtain funds from US investors and global financial institutions through false and misleading statements.
The Adani Group has denied the US charges, calling them “baseless.” The denial came after conglomerate’s shares plummeted more than 23 per cent on Thursday, losing over Rs 2 lakh crore in market value.
According to the SEC, the bribery scheme was designed to enable renewable energy companies Adani Green and Azure Power to capitalise on a multi-billion-dollar solar energy project awarded by the Indian government. The complaint alleges violations of the antifraud provisions of federal securities laws.
Federal prosecutors claim that between 2020 and 2024, Adani and his associates paid over $250 million in bribes to secure solar energy contracts worth more than $2 billion in projected profits after tax over an approximately 20-year period.
During this time, Adani Green raised more than $175 million from US investors, and Azure Power’s stock was traded on the New York Stock Exchange, the SEC stated.
The SEC and DOJ are seeking permanent injunctions, civil penalties, and bars on the executives from holding positions in publicly traded companies.