Adani Stock In Chaos As US Prosecutor Alleges Gautam Adani With Bribery Charges
In its first reaction, Adani Green Energy responds by saying that it had decided not to proceed with the proposed USD denominated bond offerings
The stocks of Adani conglomerate failed to withstand the shocks given by US prosecutors charging prominent Indian executives including Chairman of the Adani Group Gautam Adani by linking them to an alleged bribery and fraud scheme.
Adani Energy Solutions and Adani Enterprises stocks almost crashed 20 per cent followed by more than 15 per cent loss in Adani Ports and Adani Green Energy. Adani Total Gas, Adani Power and Adani Wilmar also declined more than 10 per cent on the National Stock Exchange (NSE).
According to the US Attorney's Office, Eastern District of New York, “A five-count criminal indictment was unsealed in federal court charging Gautam Adani, Sagar R. Adani, and Vneet S. Jaain, with conspiracies to commit securities and wire fraud and substantive securities fraud for their roles in a multi-billion-dollar scheme to obtain funds from U.S. investors and global financial institutions on the basis of false and misleading statements.”
"As alleged, the defendants orchestrated an elaborate scheme to bribe Indian government officials to secure contracts worth billions of dollars and Gautam S. Adani, Sagar R. Adani and Vneet S. Jaain lied about the bribery scheme as they sought to raise capital from U.S. and international investors," stated United States Attorney Breon Peace.
Breon Peace further alleged that the people named in the indictment undermined the integrity of international financial markets and defrauded US and global investors.
"The business executives allegedly bribed the Indian government to finance lucrative contracts designed to benefit their businesses. Adani and other defendants also defrauded investors by raising capital on the basis of false statements about bribery and corruption, while other defendants allegedly attempted to conceal the bribery conspiracy by obstructing the government's investigation," stated FBI Assistant Director in Charge James Dennehy.
In its first reaction, Adani Green Energy responded by saying that it had decided not to proceed with the proposed USD denominated bond offerings.
In an exchange filing on Thursday, Adani Green Energy said, "The United States Department of Justice and the United States Securities and Exchange Commission have issued a criminal indictment and brought a civil complaint, respectively, in the United States District Court for the Eastern District of New York, against our Board members, Gautam Adani and Sagar Adani. The United States Department of Justice has also included our Board member, Vneet Jaain, in such a criminal indictment. In light of these developments, our subsidiaries have presently decided not to proceed with the proposed USD denominated bond offerings." (With inputs from ANI)
