Adani Group founder and chairman Gautam Adani, along with his nephew Sagar Adani, have been summoned to explain their stance on allegations made by the US Securities and Exchange Commission (SEC) regarding the payment of USD 265 million (Rs 2,200 crore) in bribes to secure lucrative solar power contracts.
Summons have been issued to Adani's Shantivan Farm residence in Ahmedabad and Sagar's Bodakdev residence in the same city, demanding a response to the SEC within 21 days.
"Within 21 days after service of this summons on you (not counting the day you received it)...you must serve on the plaintiff (SEC) an answer to the attached complaint or a motion under Rule 12 of the Federal Rules of Civil Procedure," stated a notice dated November 21 sent through the New York Eastern District Court.
"If you fail to respond, judgment by default will be entered against you for the relief demanded in the complaint. You also must file your answer or motion with the court," it added.
Gautam Adani, 62, and seven other defendants, including his nephew Sagar, who is a director at the group's renewable energy unit, Adani Green Energy Ltd, allegedly agreed to pay approximately USD 265 million in bribes to Indian government officials between 2020 and 2024 to secure lucrative solar energy supply contracts, which were expected to yield USD 2 billion in profits over 20 years, according to an indictment unsealed in a New York court on Wednesday.
In addition to the indictment filed by the US Department of Justice, the SEC has also charged the two Adanis and Cyril Cabanes, an executive at Azure Power Global, for "conduct arising out of a massive bribery scheme".
The Adani Group has denied the allegations, stating that it will pursue all possible legal avenues.
"The Adani Group has always upheld and is steadfastly committed to maintaining the highest standards of governance, transparency, and regulatory compliance across all jurisdictions of its operations. We assure our stakeholders, partners, and employees that we are a law-abiding organisation fully compliant with all laws."
An indictment in the US is a formal written allegation originating with a prosecutor and issued by a grand jury against a party charged with a crime. A person indicted is given formal notice to respond. The individual or individuals can then hire a defence lawyer.
Prosecutors said the investigation began in 2022 and revealed that the inquiry had been obstructed. They also allege that the Adani Group raised USD 2 billion in loans and bonds, including from US firms, based on false and misleading statements regarding the firm's anti-bribery practices and policies, as well as reports of the bribery investigation.
"As alleged, the defendants orchestrated an elaborate scheme to bribe Indian government officials to secure contracts worth billions of dollars and... lied about the bribery scheme as they sought to raise capital from US and international investors," said US Attorney Breon Peace in a statement announcing the charges on Wednesday.
"My office is committed to rooting out corruption in the international marketplace and protecting investors from those who seek to enrich themselves at the expense of the integrity of our financial markets."
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