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‘Adanis aren’t named in bribery charges’: Senior lawyer Rohatgi
This is the first specific reaction of the Adani Group to the charges detailed in a criminal indictment and a civil complaint by US prosecutors and regulators.
New Delhi: Senior advocate and former attorney general of India Mukul Rohatgi on Wednesday said that neither Gautam Adani nor his nephew Sagar Adani has been named in charges related to bribery or obstruction of justice under the US Foreign Corrupt Practices Act (FCPA).
This is the first specific reaction of the Adani Group to the charges detailed in a criminal indictment and a civil complaint by US prosecutors and regulators, although Rohatgi, who acknowledged that he has appeared for the Adani Group in some cases, emphasised that he was expressing his personal views.
The controversy arises amid a criminal indictment filed by the US Department of Justice (DoJ) and a civil complaint by the Securities and Exchange Commission (SEC) in the United States District Court for the Eastern District of New York against the Adani Group chairman and some executives of his vast conglomerate.
The allegation is that the Solar Energy Corporation of India entered into an agreement with the Adani Group to buy solar power at a certain price that it would then sell to the states, but that because it had agreed to buy the power at a high rate, no state was willing to sign a Power Sales Agreement (PSA) with it. Adani, the prosecutors allege, incentivised the states to sign the agreement. The Adani Group has already dismissed the charges as baseless.
“Count 1 and Count 5 of the US indictment, which relate to conspiracy to violate the FCPA and obstruction of justice, respectively, do not name Gautam Adani or his nephew (Sagar Adani). Some other individuals, including a foreign party, have been named. Whether they are related to Adani or not, they will respond. But I wanted to clear the air that Adanis have not been named in the counts related to the violation of FCPA and obstruction of justice,” Rohatgi said. He noted that the charges relating to violation of FCPA and obstruction of justices are more serious charges than the other charges relating to security fraud and wire fraud, for which Adanis have been indicted.
The former AG also said that the indictment does not detail specific instances of bribery, such as identifying individuals allegedly bribed or the manner of such acts. “When you indict someone, you need to be specific. Here, I see no details of who was bribed, how, or from which department,” Rohatgi remarked.
He also acknowledged that Gautam Adani and others named in the indictment will respond appropriately, possibly consulting international legal experts. He underscored that these were his personal views. “Adanis will respond to this charge sheet in the manner they desire. They will also respond to the stock exchange in the manner they desire. I have not seen or vetted any of these communications. These are my personal views that I have mentioned.”
Meanwhile, Adani Green Energy Ltd. (AGEL) on Wednesday filed an official response to stock exchanges under SEBI regulations, refuting media reports suggesting bribery charges against Gautam Adani and Sagar Adani. AGEL’s statement clarified that the Adanis are not charged under the FCPA.
The filing highlighted inaccuracies in several media reports, including claims that the Adanis were charged with FCPA violations. It specified that Gautam Adani, Sagar Adani, and director Vneet Jaain face allegations of securities fraud conspiracy, wire fraud conspiracy and securities fraud. The company asserted that these charges do not involve violations of FCPA and reiterated that its directors would respond as required under legal frameworks.
Adani, 62, along with seven executives, was indicted in a New York court for allegedly orchestrating a $265 million bribery scheme. US prosecutors allege that the bribes were paid to secure lucrative solar energy contracts in India, expected to generate $2 billion in profits over two decades.
Rajya Sabha MP and senior advocate Mahesh Jethmalani, in a similarly convened press meet, echoed Rohatgi’s assertions. He went further, describing the indictment as “very sketchy” and its timing as “highly suspicious.” “There is no offence alleged in the indictment against the Adanis... Neither Adani nor Adani Green, the bondholder, have been cited as giving any bribe in India. There is nothing to investigate in India,” he maintained.
He also questioned the timing of the indictment. “Congress is reading too much into the indictment, and it is purely for political purposes. They have been aided, as is revealed by the timing of this indictment,” he added.
Meanwhile, the Opposition responded strongly to the clarification by pointing out the conglomerate’s alleged attempts to dilute the seriousness of the charges levelled by US agencies.
Trinamool Congress MP Mahua Moitra said that bribery was “front and centre” in the charges against the Adani Group executives.
“All the people explaining Adani charge sheet omit to mention that only American companies are charged under FCPA. Gautam Adani is charged with bribery but under wire fraud. He is charged with bribery but under securities exchange act. He is charged with bribing and making US participants part of bribe...” Moitra said on X. “Bribery is front & centre of the charges.”
Similarly, Congress leader Jairam Ramesh said that the Adani Group was attempting to do damage control by denying the charges levelled against the conglomerate.
In a post on X, Ramesh said: “... Now faced with serious action in other countries whose systems it cannot intimidate or erode, the Modani ecosystem is attempting damage control through denial. This laughable attempt cannot dilute the seriousness of the charges levelled by US agencies.”
