Adani CFO Clarifies: Only One Contract at Adani Green Energy Under Scrutiny

Adani Group CFO Jugeshinder Singh has addressed the recent indictment by the United States Department of Justice (DoJ) against Gautam Adani, his nephew Sagar Adani, and others, clarifying that the allegations pertain to a single contract within Adani Green Energy. This contract represents roughly 10% of the company’s business, he noted.

Singh emphasized that none of the group’s 11 publicly listed companies or their subsidiaries are implicated in the charges. He also stated that a detailed response would be issued after the legal documentation is thoroughly reviewed.

Allegations and Legal Proceedings

The DoJ has accused Gautam Adani and others of participating in a large-scale corruption scheme, involving bribes totaling approximately ₹2,029 crore to Indian government officials. The charges allege that these payments influenced the signing of power sale agreements (PSAs) with state electricity distribution companies.

The charges, filed in a New York district court and with the Securities and Exchange Commission (SEC), include conspiracy to violate the Foreign Corrupt Practices Act (FCPA), securities fraud, and wire fraud. The case involves Adani Group and NYSE-listed Azure Power, backed by Canadian investor CDPQ and associated with Adani Group.

Market Impact and Group Response

The indictment has created significant challenges for the Adani Group, leading to the cancellation of Adani Green Energy’s $600 million bond offering—the second such cancellation in recent months. The group’s shares and bonds have also faced declines as investors weigh the implications of the legal proceedings.

The Adani Group has strongly denied all allegations and stated its intent to pursue legal recourse to counter the accusations. While the case could lead to substantial penalties and profit recoveries, settlement options remain a possibility.