The US Securities and Exchange Commission (SEC) is pursuing a civil case, while the Justice Department is handling the criminal case. Both cases will proceed separately, but a US court has assigned a single judge to manage them for “efficiency purposes.”
Published Jan 03, 2025 | 4:19 PM ⚊ Updated Jan 03, 2025 | 4:19 PM
Gautam Adani. (Supplied)
A single judge will oversee both civil and criminal cases against the Adani Group, CNBC-TV18 reported, citing a United States Department of Justice official.
The US Securities and Exchange Commission (SEC) is pursuing a civil case, while the Justice Department is handling the criminal case. Both cases will proceed separately, but a US court has assigned a single judge to manage them for “efficiency purposes.”
On 20 November 2024, the Justice Department unsealed a five-count criminal indictment in the Eastern District of New York.
The charges accuse Gautam Adani and his associates of conspiracy to violate the Foreign Corrupt Practices Act, securities fraud, mail and wire fraud, and conspiracy to obstruct justice.
Prosecutors allege Adani and his associates paid $250 million in bribes to Indian government officials to secure solar energy contracts worth over $2 billion in profits. The indictment also claims they concealed these activities from US investors and financial institutions using false and misleading statements.
Simultaneously, the SEC also filed civil charges against Gautam Adani, his nephew Sagar Adani, and others. The complaint alleges they violated US securities laws by engaging in a bribery scheme to secure energy contracts at inflated rates.
In a statement issued soon after the charges were unsealed, the Adani Group denied the allegations, calling them baseless.
“The Adani Group has always upheld and is steadfastly committed to maintaining the highest standards of governance, transparency, and regulatory compliance across all jurisdictions of its operations. We assure our stakeholders, partners, and employees that we are a law-abiding organisation, fully compliant with all laws,” the statement read.
Priyanka Chaturvedi, member of Parliament from Maharashtra and deputy leader of Shiv Sena-UBT, expressed disappointment over the lack of action in India. Speaking to South First, she said:
“The only development I see here is the law taking its own course in America. Meanwhile, in India, where the incidents in the case have actually taken place, where thousands of crores in bribes have been given to secure solar contracts, it remains uninvestigated. We have such timid agencies working under the whims and fancies of the government in power. We witnessed an entire parliament session disrupted because they did not want a discussion on this matter.”
Chaturvedi criticised Prime Minister Narendra Modi, alleging that his administration’s inaction suggested complicity.
“What is shameful is that a Prime Minister who spoke about zero tolerance for corruption now faces the reality of a US court indicting an industrialist for lakhs of crores in bribes taken and given. This suggests he is probably also part of this corrupt nexus. That is why Mr Adani has been protected in India. The Union Government has decided they will, at any cost, continue to defend the interests of Mr Adani, an industrialist, at the expense of transparency, accountability, and the freedom of agencies in India to investigate such economic frauds. This comes at the cost of encouraging corruption in India,” she said.
Similarly, Syed Naseer Hussain, a Rajya Sabha MP from Karnataka, reiterated opposition calls for a Joint Parliamentary Committee (JPC) inquiry into the allegations against the Adani Group.
“For a long time, we have been asking for an investigation into this entire issue, into the businesses owned and handled by the Adani group, especially since so many research companies have come out with allegations and revelations of widespread corruption, kickbacks, and the tweaking of rules to benefit one group,” Hussain told South First.
“However, the Government of India has not been very forthcoming on this matter. Hindenburg Research’s and other revelations have emerged, but now there’s an indictment against this company in the US, and clear allegations that this person has bribed officials in India. Our country’s credibility is at stake because of this.”
He also criticised the government for its dismissal of opposition demands for a JPC.
“We have been demanding a Joint Parliamentary Committee (JPC) enquiry into the entire business dealings of Mr Adani so that the truth can come out, and there can be a deeper and detailed study of the entire issue. Now the government is claiming that those calling for an investigation into this matter are joining hands with those threatening the national security of the country,” he said.
“According to the indictment, our politicians, bureaucrats, and business houses have participated in the giving and taking of bribes. This makes it even more necessary for us to come clean on this matter. There have been so many JPCs on other allegations in the past; why shouldn’t a JPC be announced to address this and ensure transparency? This is not just about one politician or one businessman—it concerns all politicians, bureaucrats, parties, and states.”
(Edited by Dese Gowda with inputs by Nolan Pinto)
