Probe Looks into Gautam Adani’s Conduct and Energy Project Dealings, Though Adani Group Denies Allegations, Investigation Continues
US probes Adani Group led by Indian billionaire Gautam Adani
This probe is for possible bribery of Indian officials in an energy project. The company denies the allegations.
The United States is widening its investigation into India’s Adani Group, a conglomerate led by billionaire Gautam Adani. The focus of the probe has shifted to potential bribery involving Indian officials and an energy project, according to a Bloomberg News report.
Prosecutors are examining whether an Adani entity or individuals associated with the company, including Gautam Adani himself, were involved in bribing officials to secure favorable treatment on the project. The investigation is being conducted by the U.S. Attorney’s Office for the Eastern District of New York and the Justice Department’s fraud unit in Washington. Indian renewable energy company Azure Power Global is also included in the probe.
Adani Group has firmly denied any knowledge of an investigation against its chairman. The company maintains it operates with the highest ethical standards and adheres to anti-corruption laws in India and elsewhere.
This investigation comes after allegations of stock manipulation and accounting fraud levied by short-seller Hindenburg Research last year. Adani Group vehemently denied these claims, and its stock price has since recovered significantly.
Despite ongoing scrutiny, the US government has continued to collaborate with Adani Group entities. Last year, the US International Development Finance Corp. provided funding for an Adani port terminal project in Sri Lanka, aiming to counter China’s influence in the region.
It’s important to note that the investigation is ongoing, and neither Gautam Adani, his company, nor Azure Power have been formally charged with any wrongdoing. The Justice Department is not obligated to notify parties under investigation, and investigations don’t always lead to prosecution.
The Foreign Corrupt Practices Act (FCPA) empowers US authorities to pursue allegations of foreign corruption even if the company involved doesn’t trade on US stock exchanges, as long as there are American investors involved. While Adani Group itself doesn’t trade in the US, it does have American investors.
This investigation highlights the complex geopolitical landscape surrounding the Adani Group. The conglomerate is deeply integrated with the Indian economy and is closely monitored by the White House as a potential strategic partner against China’s growing influence. The investigation’s outcome could have significant implications for both Adani Group and US-India relations.
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