The United States has launched a probe into India’s Adani Group over potential bribery allegations, focusing on billionaire founder Gautam Adani and a subsidiary’s involvement in securing favorable treatment on an energy project in India. The investigation, led by the US Attorney’s Office for the Eastern District of New York and the Justice Department’s fraud unit in Washington, is examining whether Adani entities or individuals linked to the company paid officials in India for favorable treatment.
In response to the allegations, the Adani Group issued a statement asserting its commitment to the highest standards of governance and compliance with anti-corruption laws in India and other countries. However, representatives from the Justice Department declined to comment, and Azure Power Global Ltd, another Indian renewable energy company under scrutiny, did not respond to requests for comment.
The investigation follows allegations from short-seller Hindenburg Research last year, accusing the Adani conglomerate of stock price manipulation and accounting fraud. Despite these claims, the Adani Group has vehemently denied any wrongdoing, and its shares have largely recovered from the initial plunge.
Interestingly, despite the ongoing scrutiny, the US government has continued to engage with Adani Group entities. Last year, the US International Development Finance Corp. provided substantial financing to an Adani unit for a port terminal project in Sri Lanka, aiming to counter China’s influence in the region.
While the investigation into Adani Group’s alleged bribery is at an advanced stage, neither Gautam Adani, his company, nor Azure Power have been charged with any wrongdoing by the Justice Department. It’s important to note that investigations do not always result in prosecutions, and the Foreign Corrupt Practices Act (FCPA) allows US prosecutors to pursue foreign corruption allegations if certain links to American investors or markets exist.
The unfolding investigation underscores the geopolitical implications surrounding the Adani Group, which plays a significant role in the Indian economy and is closely monitored by the White House as a potential counterbalance to China’s influence in the region. As the probe progresses, it will be closely watched by stakeholders in both India and the United States.