Indian billionaire Gautam Adani struck a combative tone in his first public remarks since US prosecutors indicted him in a US$250 million bribery scheme, saying “every attack” makes his conglomerate stronger.
In his first public appearance since the indictment became public on Nov 21, Asia’s second-richest man said no one in his conglomerate faces US charges under the Foreign Corrupt Practices Act (FCPA) or conspiracy to obstruct justice, and that he’s working through the legal process “to reconfirm our absolute commitment to world-class regulatory compliance”.
“This is not the first time we have faced such challenges,” Adani said in prepared remarks to a jewellery award ceremony in Jaipur, India, on Saturday (Nov 30). “What I can tell you is that every attack makes us stronger and every obstacle becomes a stepping stone for a more resilient Adani Group.”
The indictment has roiled Adani stocks, prompted Adani Green to scrap a US$600 million US dollar bond and triggered a query from India’s market regulator. US prosecutors allege Adani and associates lied to US investors about their anti-bribery practices while promising more than US$250 million in bribes to Indian officials to win solar-energy contracts.
Adani company executives are charged with three fraud counts. Other defendants are charged with violating the FCPA, which bars US-linked entities from bribing foreign officials.
Adani on Saturday blamed “a lot of the vested reporting” for spreading “negativity” about the nature of the US charges. Adani Group has denied allegations of misconduct by its executives and said it would defend itself in court.
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He also cited a “short-selling attack initiated from abroad” – a reference to a Hindenburg Research report in January 2023 – which alleged wide-ranging corporate fraud, causing a plunge in its companies’ shares. The Adani Group denied any wrongdoing.
The challenges “have made us tougher”, Adani said in his prepared remarks.
The Indian government has distanced itself from the controversy and said the two countries did not discuss the matter. “We see this as a legal matter involving private firms and individuals and the US Department of Justice,” said Randhir Jaiswal, a spokesperson for India’s External Affairs Ministry on Friday (Nov 29).
“We have not been informed in advance on the issue. We have not had any conversation also on this particular matter with the US government,” Jaiswal said, adding that any requests by a foreign government for service of summons or an arrest warrant are a part of mutual legal assistance that are examined on their merits. “We have not received any request on this case from the US side.”
FCPA investigations can typically take years.
Adani Green said on Wednesday that it faces yet to be determined monetary penalties under a civil complaint. The group said separately that it suffered an erosion of nearly US$55 billion in market value across 11 listed companies after the US indictment. BLOOMBERG
