Wed Nov 27 16:02:40 UTC 2024: ## Adani Group Executives Face US Fraud Charges, But Not FCPA Violations

**New Delhi, November 27, 2024** – A US Department of Justice indictment has charged several executives from Adani Green Energy Ltd (AGEL) and other companies with securities and wire fraud, but notably, Gautam Adani, his nephew Sagar Adani, and Vneet Jaain have not been charged with violating the US Foreign Corrupt Practices Act (FCPA).

The indictment, filed in a New York court last week, alleges a scheme involving $265 million in bribes paid to secure Indian solar power contracts. While the alleged bribery is central to the case, the charges against the Adani executives specifically relate to securities fraud and wire fraud conspiracies, not FCPA violations. The Adani Group maintains that the accusations are baseless and plans to vigorously defend itself.

The indictment also accuses executives of misrepresenting anti-bribery practices to US investors and concealing bribe payments. Although several executives are named, the indictment does not identify those who allegedly made the bribe payments. The DOJ also alleges attempts to obstruct investigations.

The lack of FCPA charges is significant because the Act prohibits US-linked entities from bribing foreign officials. While no Adani companies trade on US exchanges, some, including AGEL, have American investors. Legal experts representing the Adani Group highlight the absence of FCPA or obstruction of justice charges in the indictment.

The fallout from the indictment has been substantial. Adani Group companies have experienced a $54 billion drop in market capitalization, prompting credit rating downgrades from Moody’s and Fitch. AGEL canceled a $600 million debt raise, and TotalEnergies, a major investor, has paused new investments. The US International Development Finance Corporation is reviewing a $550 million loan to an Adani-led project, and several other investors are reassessing their relationships with the conglomerate. The civil complaint filed against Gautam and Sagar Adani alleges Securities Act violations and seeks unspecified civil penalties.

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