The Adani Group does not feel that a U.S. investigator’s accusation of bribery is justified. Calling it “false and baseless,” the group asserted that no formal notice or communication had been received from the U.S. Department of Justice.
The statement was issued in response to reports suggesting that U.S. authorities were investigating the purported bribery of officials by one of the Adani entities.
Background on the Allegations
Allegations reported by Bloomberg suggest the investigation has expanded to determine whether any Adani-linked entities were guilty of corrupt acts. The U.S. Attorney’s Office for the Eastern District of New York and the Justice Department’s Fraud Section are investigating this probe.
Nevertheless, the Adani Group reiterated its strict adherence to worldwide anti-bribery and anti-corruption laws in its operations in India and abroad.
Impact on the Adani Group
Despite the company’s dismissal of the assertion, the controversy has immediate consequences in the stock market. The Adani Group’s dollar bonds posted their sharpest decline in over a year, while shares of some of its companies, such as Adani Enterprises and Adani Ports, also fell sharply after the news.
The reaction reflects growing investor concern over the conglomerate’s governance and transparency issues.
Adani Group’s Statement
News reports published by Bloomberg say that U.S. prosecutors, a.k.a. the DOJ fraud section and the U.S. Attorney’s Office in New York, have begun investigations to determine whether one or more Adani entities may have engaged in corrupt practices.
According to other reports, this probes into many Indian conglomerates, including renewable energy firm Azure Power Global. The Adani Group has stated it was unaware of any active investigation against its founder, Gautam Adani, or against any of the Adani Group companies.
The Adani Group reiterated its commitment to the highest standard of corporate governance. “We operate in compliance with the highest standards of governance and compliance. These allegations are speculative and unfounded,” it said.
It has also dismissed suggestions that there is any investigation against its chairman, Gautam Adani, as U.S. authorities have not confirmed such an inquiry.
This consideration is garnered at a time of increased attention to corporate governance in large conglomerates. The Adani group is no stranger to controversy, having previously faced allegations over financial and operational practices.
While the group has reiterated and refuted every allegation, pending investigations have the potential to severely damage its international operations and investments.
