Gutam Adani accused of wire fraud, bribery in the United States: Is the Adani group governed?

Gotam Adwani, founder and head of the Adwani Group, cannot escape from the controversy for a long time. In the last case, a federal court in New York directed billionaire alongside other defendants in a huge fraud case. As expected, Adani Group launched today after the news.

Investors feel a little Déjà Vu, where the stock was disrupted last year after criticizing the American Hindburg Short Research in a huge report. At that time, allegations were often rejected as biased because it came from a short seller who stood greatly from the accident in the shares of the Adani Group. Today’s accident is likely to be more dangerous and may hinder the company for many years.

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The American Court is charged with Adwani with seven executives

The Brokelin Federal Court accused Gotam Adwani, along with other executives of the company on charges of fraud, securities fraud, and violations of the Foreign Practical Practices Law (FCPA). Public prosecutors claim that Gotam Adwani personally met government officials to secure billions of dollars in renewable energy contracts to his companies by paying bribes.

They claim that they paid a bribe of $ 250 million to secure the contract, which will make a profit after a $ 2 billion tax over 20 years. According to the indictment, Gotam Adwani, Sajar Adani, and Fenet S. lying.

“Gotam S. and seven other executives who bribe the Indian government to finance profitable contracts aimed at benefit Assistant Director of the Federal Bureau of Investigation, official James E. Stretching.

As expected, the Adani group denied all these allegations and said: “The Adani group has always supported and adheres to maintaining the highest standards of government, transparency and organizational compliance in all judicial states.

The repercussions of the indictment

Adani Group shares today decreased with the decrease of the main Adani companies by approximately 23 %. The shares of Indian public sector banks, which are largely exposed to the Adani Group.

After the accusation, Adani Green Energy canceled the plans to raise approximately $ 600 million through bonds in dollars. The group listed today also declined in the risk environment towards the Indian bloc. The indictment is a major blow to the company, especially as it was seeking foreign investments to reduce its debts and finance its growth.

The US -based GQG Partners, which is among the largest supporters of the Adani group, has invested in group companies, was 25 % today in Australia. Rajiv Jain, which it now leads, is now reviewing its group’s investments.

The net value of Gotam Adwani also decreased by more than 10 billion dollars today, as the value of his shares was floating. A Reuters report He said that the arrest orders were issued against him, and it is expected that Sajar Adwani and the prosecutors to enforce foreign law.

It is worth noting that the matter may lead to the freezing of Adani’s assets and may restrict his international travel. The next step after the indictment will be the stage of the charges, as the judge will connect the charges to the accused and decide whether they will be given the guarantee. The case will be transferred to the trial of the jury if the defendants decide to invite “non -guilty.”

Hindenburg accused Adani’s fraud group

Meanwhile, this is not the first time that Adani’s group has been accused of violations. Last month, a Kenya court canceled a $ 736 million deal between Adani Energy Solutions and the Kenya -owned electricity company (Ketraco), on the pretext that the agreement was a “constitutional trick”. Previously, there were protests in the country on plans to rent an airport for the Adani Group

From DAY ONE, we all warned our Government that Gautam Adani is a crook! US Government has issued warrants for his arrest for us$250m (Kshs. 32Billion) bribe! We have repeatedly demanded that ADANI contracts with JKIA, SHA, KETRACO & Mombasa Port be cancelled. The US trial will… pic.twitter.com/fL0mB84YlJ

— Donald B Kipkorir (@DonaldBKipkorir) November 21, 2024

In 2023, Hindenburg Research The group was accused of engaging in the “fraud and accounting scheme for contracts.” Among other things, I claimed that Gotam’s brother condemned Vinod Adwani used a network of shell entities abroad to invest in stocks listed in the Adani group without the due disclosure.

The seller’s exposed company claimed that they did this with the intention of laundering money and manipulating stock prices, as these external entities carry a large part of the ADani Group’s general floor. The report also found that the Adanyi collection is shockingly outperforming. After these allegations, the group has taken many measures to reduce the prosperous debt pile, including collecting money by special status of shares.

Adani also faces allegations of excessive charcoal overcoming and selling it to government facilities in India. The documents guaranteed by the International Energy Agency Organized crime reports and corruption (OCRP) earlier this year revealed that it exceeded high -quality low -quality coal. In this process, he not only claimed that he was not claimed, but by extension, consumers who end up pushing a higher energy tariff, but also the problem of pollution in India worsened.

The second richest man in India was close to Narindra Modi

In its report, Occrp added, “Although there is no final, the data adds strong new evidence to excessive allegations against the strong ADANI group, which is seen as close to Prime Minister Narendra Modi, the largest importer in India and a special product for coal.”

It is worth noting that the apparent approach to Adanyi to Moody and the ruling BJP party (BJP) was the issue of the opposition parties that it raises for some time. Adanyi, the second richest Indian, has many ports and airports in the country (which some claim that billionaire has managed to obtain the use of his political links) and his wealth exploded significantly in Moody State.

Guitam Adani has been accused of Quid Pro Quo’s transactions several times over the years. For example, in 2022, he bought the famous NDTV News channel that was completely criticized for Moody and the Bharatiya Jatata Party. Many of the main people in NDTV have left the channel since then, and it is now clearly soft on the ruling Bharatia Gatana Party.

It was claimed that the Indian authorities are soft on Adwani

Meanwhile, it was claimed that the Indian authorities, including the SABI (Securities and Stock Exchange Council) were very soft on Adani, even after Hindenburg’s allegations. Certainly, the country’s Supreme Court supported failure to work.

However, the opposition was calling for JPC (the Joint Parliamentary Committee) to investigate the group’s issues. After accusing Adani in the United States, the leading opposition party in India said that its request on JPC had been justified and called for the arrest of the billionaire.