In a release on Wednesday, the Adani Group sought to explain that Gautam Adani, the chairman of the firm, and Sagar Adani, his nephew, have not been accused of FCPA violation in the United States. This clarification comes after the United States Department of Justice (DOJ) filed an indictment with the onset of allegations against Gautam Adani, Sagar Adani, and head executive Vneet Jaain.
The DOJ’s indictment initially filed in the United States District Court of the Eastern District of New York, outlines offenses of securities fraud conspiracy, wire fraud conspiracy, and securities fraud. Nevertheless, the Adani Group was eager to assert that none of the above has anything to do with the FCPA. The company said that “it wishes to clarify that the DOJ did not accuse Gautam Adani, Sagar Adan,i or Vneet Jaain of any FCPA violations in either the criminal indictment filed against them or the civil complaint filed by the SEC.”
The indictment does not indicate any possible monetary fines or any other penalties for that matter. However, a new civil suit filed by the United States Securities and Exchange Commission (SEC) alleges that the executives have committed violations of the provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The complaint also claims that the individuals conspired and assisted Adani Green Energy Limited to violate these acts. The complaint doesn’t disclose how much money the company and officers could face in penalties, even though the SEC wants civil money penalties.
In response, the Adani group has admitted to knowing nothing about the allegations and vowed to seek all available legal means in defending its executives and the organization. “We continue to support a rigorous approach to addressing these claims,” the company said in reference to its stance on the accusations.
This has been a major step up in the continuing litigation between the titan Indian business conglomerate and the United States government.
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