US Probes Gautam Adani And Adani Group Over Potential Bribery: Report (Image: X/@gautam_adani)The United States has reportedly widened its investigation into India’s Adani Group, focusing on potential bribery and the conduct of billionaire founder Gautam Adani. Bloomberg reported that the investigation is handled by the Justice Department’s fraud unit in Washington and the US Attorney’s Office for the Eastern District of New York.
Bloomberg, citing people with direct knowledge of the matter, reported that the current investigation is to find out whether an Adani entity or people linked to the firm, including Gautam Adani, were involved in paying officials in India for favorable treatment on an energy project. At the same time, the investigation also extends to Azure Power Global Ltd, an Indian renewable energy company. In November 2023, Azure Power was delisted from the New York Stock Exchange (NYSE) over delayed filings.
Meanwhile, Adani Group told Bloomberg that they are not aware of any investigation against Gautam Adani. The business group also said that they function with the “highest standards” of governance. “We are subject to and fully compliant with anti-corruption and anti-bribery laws in India and other countries,” said the Adani Group in an emailed statement to Bloomberg News. The representatives for the Justice Department in Washington and Brooklyn declined to comment on the matter.
It is to be noted that United States law permits federal prosecutors to pursue foreign corruption allegations if they involve certain links to American investors or markets. Bloomberg also reported that in recent years, Adani Group and Azure have won contracts for projects as part of the same state-run solar program.
The business world also witnessed short seller hedge fund Hindenburg Research’s allegations against the Adani Group in 2023. Despite this, the US administration continued to work with Adani Group entities. In November 2023, there were reports that the US International Development Finance Corporation (DFC) would lend $553 million in financing to an Adani unit for a port terminal in Sri Lanka’s capital. Bloomberg reported that the US government’s development finance institution made this move to restrict the influence of China in the region.