Key Points
- US authorities have charged Gautam Adani and seven associates in a $265 million bribery scheme.
- The Supreme Court petition challenges Sebi’s handling of the Hindenburg Research allegations.
- Sebi has not filed its report on investigations ordered by the Supreme Court in January 2024.
- Adani Group and executives face charges over alleged bribery to secure solar contracts in India.
- The US SEC has filed separate charges accusing the Adani Group of issuing false statements to secure $2 billion in loans.
- The Adani Group denies the allegations, calling them “baseless.”
- Hindenburg Research had raised concerns about Sebi’s ties to offshore funds linked to the Adani Group.
Looma News
A new petition was filed in the Supreme Court on Sunday, asking the court to review bribery and fraud charges against Gautam Adani and seven of his associates, as accused by US authorities. The petition also questions the Securities and Exchange Board of India (Sebi) for not properly investigating these allegations, especially those raised by Hindenburg Research, which previously accused the Adani Group of improper financial practices.
The petition points out that Sebi has yet to submit any report or findings on its investigation, even though the Supreme Court set a deadline in January 2024. This delay has led to concerns about Sebi’s credibility as a market regulator. The petition argues that without a formal report, Sebi’s ability to oversee corporate wrongdoing is in doubt.
The investigation focuses on the Adani Group’s alleged involvement in a bribery scheme linked to solar energy contracts. US prosecutors claim that Adani and his executives, including his nephew Sagar Adani, paid $265 million in bribes to secure lucrative solar contracts expected to generate $2 billion in profits over the next 20 years. In a separate case, the US Securities and Exchange Commission (SEC) has accused Adani Group executives of issuing false statements to secure 2 billion dollars in loans and bonds.
The Adani Group has strongly denied all the allegations, calling them “baseless.” The bribery charges add to the growing scrutiny of the conglomerate, which had already been under investigation due to earlier accusations from Hindenburg Research. In August 2024, Hindenburg accused Sebi chairperson Madhabi Puri Buch of having ties to offshore funds allegedly linked to the Adani Group. However, both Sebi and Buch have denied these claims, stating that the allegations are unfounded and that Sebi has conducted a thorough investigation into the Adani Group’s financial practices.
