The Adani Group disclosed the existence of an anti-bribery probe in the United States nearly a year after the Federal Bureau of Investigation (FBI) agents raided the premises of Sagar Adani, a nephew of Gautam Adani, a Moneycontrol analysis of the various disclosures made by the conglomerate show.
In March 2024, Adani Green raised $409 million from a clutch of international investors through bond issuance. For this, the company filed an offer document in which it mentioned the investigation. However, in this disclosure, it did not indicate any potential probe against promoters. Sagar Adani is also a board member and key managerial personnel (KMP) in Adani Green.
“Further, Adani Green Energy Limited, its operations and projects in India and its officers and/or personnel are subject to or exposed to present inquiries and investigations under the anti-bribery or anticorruption laws of other countries (such as the U.S. Foreign Corrupt Practices Act). It is not possible to predict the outcome or timing of commencement, continuation and completion of inquiries or investigation(s), in India or overseas,” the March 2024 disclosure said.
The US Department of Justice (DOJ) on November 20 issued an indictment against Sagar and Gautam Adani among others, alleging they violated the US Foreign Corrupt Practices Act (FCPA) by bribing certain Indian officials.
Adani Group in a statement on November 21 called the allegations baseless. “As stated by the US Department of Justice itself, the charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty. All possible legal recourse will be sought,” the statement said.
Also read: US bribery charges: Gautam Adani Group stocks, banks, other shares hit in widespread fallout
NCD issue flagged probe against promoters
The group made a more specific disclosure and indicated a possible link to the promoter group for the first time in August 2024 when its flagship Adani Enterprises was launching non-convertible debenture (NCD) offering of Rs 800 crore for retail investors in India.
In the document filed with SEBI on August 27, by Adani Enterprises dated, “One of our promoters is subject to or exposed to present inquiries and investigations under the anti-bribery or anti-corruption laws of other countries (such as the U.S. Foreign Corrupt Practices Act). It is not possible to predict the outcome or timing of commencement, continuation and completion of inquiries or investigation(s), as the case may be, in India or overseas.”
“ Any violation of anti-corruption laws against us or our Promoters could result in penalties, both financial and non-financial, that could have a material adverse effect on our business, results of operations and financial condition in future periods and reputation.”
This disclosure was reiterated in a October 16 offer document filed by Adani Enterprises for a Rs 4,200-crore qualified institutional placement (QIP) offering.
Read More: Key highlights of the 54-page US indictment in Adani bribery case
The 2024 annual report
In its annual report for 2024, Adani Green Energy disclosed there were no pending bribery charges against directors, KMPs or any other permanent employees of the company. Both Gautam and Sagar Adani were the directors of the company on the date of filing of the annual report.
DOJ has claimed that Sagar and Gautam Adani were aware of its probe at least since March 2023.
“In or about March 2023, FBI special agents took steps in furtherance of the FBI Investigation and the Grand Jury Investigation that revealed the existence of those investigations, as well as certain crimes and individuals under investigation, to the defendant SAGAR R. ADANI, which information was shared with the defendant GAUTAM S. ADANI,” said the DOJ indictment filed before the United States District Court, Eastern District of New York on October 24.
“FBI special agents provided SAGAR R. ADANI with a copy of the search warrant and served him with a grand jury subpoena. The search warrant identified offenses, individuals and entities under investigation by the United States government, specifically: violations of the FCPA, securities fraud, wire fraud and related conspiracies involving SAGAR R. ADANI and the defendants GAUTAM S. ADANI and VNEET S. JAAIN, as well as the Indian Energy Company.”
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