Adani CFO Addresses U.S. Bribery Allegations, Says Only One Contract is Affected

Adani Group’s Chief Financial Officer, Jugeshinder Singh, has responded to the U.S. bribery charges against billionaire Gautam Adani, aiming to provide clarity and reassurance. Singh explained that the allegations are tied to just one specific contract under Adani Green Energy Limited, which represents about 10% of the company’s business. He made it clear that no other Adani Group companies are involved in the accusations.

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Understanding the Allegations

The U.S. government recently indicted Gautam Adani and seven others, alleging their role in a $265 million scheme to bribe Indian officials to win power-supply contracts. Singh firmly denied any wrongdoing on behalf of Adani Green Energy or the broader Adani Group, calling the allegations “baseless.”

“This matter pertains to one single contract of Adani Green, and none of our 11 publicly listed companies are under indictment or accused of wrongdoing,” Singh shared on Saturday.

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What Does This Mean for Adani Group?

These charges are a serious challenge for the $143 billion Adani Group, which is already under scrutiny following earlier allegations of financial misconduct. Here’s how the situation is unfolding:

• Stock Market Declines: Adani Group shares have dropped significantly since the indictment became public.

• Global Financial Strains: Some international banks are reportedly holding back on new credit to the group.

• Loss of Business: Kenya recently canceled two major contracts with Adani, worth over $2.5 billion.

Adani Green Energy has also been accused of misleading U.S. investors about its adherence to anti-bribery laws and corporate governance principles.

What the Group is Saying

Singh acknowledged that the group was aware of potential issues surrounding the allegations but only learned the full details two days before his statement. He added that the company had disclosed potential risks in its bond offerings earlier this year.

The CFO reiterated that the charges are limited to Adani Green and do not affect the group’s broader portfolio.

Leadership in the Spotlight

The indictment has also raised questions about the role of Sagar Adani, a director at Adani Green and a key member of the leadership team. According to the charges, he kept track of alleged bribes to Indian officials using his mobile phone.

Singh noted that the company is taking the matter seriously and is working to respond appropriately.

What’s Next?

Adani Group is preparing a detailed response to the allegations but will wait for legal clearance before making further comments. “Once the courts permit, we’ll share a comprehensive statement,” Singh said, assuring stakeholders of transparency.

For now, the group is focused on stabilizing its operations and reassuring investors that its core businesses remain strong and unaffected by the charges.

Stay updated on the latest developments with ishookfinance.com for more insights into this story and the broader financial landscape.

Also Read: US SEC Summons Adani and Nephew Over Alleged Bribery in Solar Deals