US securities regulator summons Adani

The US Securities and Exchange Commission (SEC) has summoned Adani group founder and chairman Gautam Adani and his nephew Sagar to explain their stand on allegations of paying $265 million ( ₹2,200 crore) in bribes to get lucrative solar power contracts.

Summons were sent to Adani's Shantivan Farm residence and Sagar's Bodakdev residence in Ahmedabad, according to Mint.

The regulator has asked them to reply within 21 days.

"Within 21 days after service of this summons on you (not counting the day you received it)...you must serve on the plaintiff (SEC) an answer to the attached complaint or a motion under Rule 12 of the Federal Rules of Civil Procedure," said a November 21 notice sent through the New York Eastern District Court.

"If you fail to respond, judgment by default will be entered against you for the relief demanded in the complaint. You also must file your answer or motion with the court," it added.

62-year-old Gautam Adani and seven other defendants, including Sagar, who is a director at Adani Green Energy Ltd, allegedly agreed to pay about $265 million in bribes to Indian government officials between approximately 2020 and 2024 to obtain lucrative solar energy supply contracts on terms that expected to yield $2 billion of profit over 20 years, according to an indictment unsealed in a New York court on Wednesday.

Separate from the indictment brought by the US Department of Justice, the US SEC has also charged the two and Cyril Cabanes, an executive of Azure Power Global, for "conduct arising out of a massive bribery scheme".

An indictment in the US is basically a formal written allegation originating with a prosecutor and issued by a grand jury against a party charged with a crime.

However, Adani group has denied allegations and said it will seek all possible legal resources.

"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."

Prosecutors said the investigation started in 2022 and found the inquiry obstructed.

They alleged that Adani Group raised $2 billion in loans and bonds, including from US firms, on the backs of false and misleading statements related to the firm's anti-bribery practices and policies, as well as reports of the bribery probe.

"As alleged, the defendants orchestrated an elaborate scheme to bribe Indian government officials to secure contracts worth billions of dollars and... lied about the bribery scheme as they sought to raise capital from U.S. and international investors," US Attorney Breon Peace said in a statement announcing the charges on Wednesday.

"My office is committed to rooting out corruption in the international marketplace and protecting investors from those who seek to enrich themselves at the expense of the integrity of our financial markets."