By Reena Bhardwaj
Washington [US], November 22 (ANI): The US Securities and Exchange Commission (SEC) on Thursday (local time) charged, Adani Group Chairman Gautam Adani and Sagar Adani, and Cyril Cabanes, an executive of Azure Power Global Ltd., for conduct arising out of an alleged bribery scheme.
According to the SEC’s allegations, the bribery scheme was allegedly orchestrated to enable the two renewable energy companies to capitalize on a multi-billion-dollar solar energy project that the companies had been awarded by the Indian government.
According to the SEC, during the alleged scheme, Adani Green raised more than USD 175 million from U.S. investors and Azure Power’s stock was traded on the New York Stock Exchange.
According to the SEC’s complaint, Gautam and Sagar Adani orchestrated the alleged bribery scheme that involved paying or promising to pay bribes to Indian government officials to secure their commitment to purchase energy at above-market rates.
The SEC also charged Cyril Cabanes, a former member of Azure Power’s Board of Directors, with Foreign Corrupt Practices Act (FCPA) violations for his role in the alleged bribery scheme. According to the SEC’s complaint, Cabanes allegedly facilitated the authorization of bribes in furtherance of the scheme while in the United States and abroad.
“As alleged, Gautam and Sagar Adani induced U.S. investors to buy Adani Green bonds through an offering process that misrepresented not only that Adani Green had a robust anti-bribery compliance program but also that the company’s senior management had not and would not pay or promise to pay bribes, and Cyril Cabanes participated in the underlying bribery scheme while serving as director of a U.S. public company,” said Sanjay Wadhwa, Acting Director of the SEC’s Division of Enforcement.
“We will continue to vigorously pursue and hold individuals, including senior corporate officers and directors, accountable when they violate our securities laws,” he added.
The SEC’s complaint against Gautam and Sagar Adani charges them with violating the antifraud provisions of the federal securities laws. The complaint seeks permanent injunctions, civil penalties, and officer and director bars. The SEC’s complaint against Cabanes charges him with violating the FCPA and seeks a permanent injunction, a civil penalty, and an officer and director bar. Both complaints were filed in the U.S. District Court for the Eastern District of New York.
Earlier, the U.S. Attorney’s Office for the Eastern District of New York unsealed criminal charges against Gautam Adani and other executives linking them to an alleged bribery scheme.
On Thursday. the Adani Group strongly refuted bribery allegations made by the US Department of Justice and the US Securities and Exchange Commission against directors of the Adani Green terming them baseless.
Adani Group spokesperson, in an official statement, said all legal recourse will be taken. “The US Department of Justice and the US Securities and Exchange Commission against directors of Adani Green are baseless and denied,” the statement read.
The group further highlighted a key aspect of the legal proceedings. “As stated by the US Department of Justice itself, ‘The charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty.’ All possible legal recourse will be sought,” the statement said.
Amid these allegations, Adani Green Energy also informed stock exchanges that its subsidiaries have decided to defer their planned US dollar-denominated bond offerings. (ANI)
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