Gautam Adani, his nephew Sagar Adani and other key Adani executives have not been charged with any bribery charges, that is, violation of the Foreign Corrupt Practices Act (FCPA) in the indictment of the US Department of Justice (DoJ) or the civil complaint of the US Securities and Exchange Commission (SEC), Adani Green Energy Ltd (AGEL) said on Wednesday.
Following the clarification, Adani Group stocks rose on Wednesday and extended gains to 10-20%. AGEL shares closed at Rs 989.30, up 10% from previous close.
Senior lawyer and former attorney general Mukul Rohatgi, who previously represented Adani group in a few cases, told reporters that while the indictment includes multiple counts, the key charges – count one involving a conspiracy to violate the FCPA and count five pertaining to obstruction of justice – do not name Adani or the other top officials, including the company’s managing director Vneet Jaain.
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These directors have been charged on three counts in the criminal indictment — alleged securities fraud conspiracy; wire fraud conspiracy, and securities fraud,” the company said in an exchange filing. “The indictment does not specify any quantum of any fine or penalty,” AGEL said in a separate exchange filing, clarifying on the expected financial implications on the company, if any, due to penalty.
“It is important to note that count one and count five are more important than others, but neither in count one, nor in five, is Adani or his nephew charged,” Rohatgi said. “So count one mentions charges against certain other persons, minus the two Adanis, it includes some of their officers, and one foreign person, that is the conspiracy to violate foreign corrupt practices act (FCPA). Then there are two-three counts relating to securities and bonds, in which Adanis are named.” He further noted that the last, and very important count, which relates to obstruction of justice do not name the Adanis or their officers but certain other persons including a foreign party.
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