Gautam Adani Refutues US Bribery Allegations, Says 'Every Attack Makes Us Stronger'; Shares In Focus

Adani Group Chairman Gautam Adani has strongly refuted recent allegations of bribery and fraud. Addressing the issue during the 51st Gem and Jewellery Awards in Jaipur on Saturday, November 30, Adani emphasized that such obstacles serve as catalysts for the Group's strength and growth.

The controversy stems from accusations by US prosecutors on November 20, alleging that $250 million in bribes were paid to Indian officials to secure favourable terms for solar power contracts awarded to Adani Green Energy Ltd and Azure Power Global Ltd. The allegations, dismissed by the Adani Group as "baseless," claim improprieties in compliance practices.

A spokesperson for the Adani Group vehemently denied the charges, stating, "The allegations made by the US Department of Justice and the US Securities and Exchange Commission against directors of Adani Green are baseless and denied."

India's Ministry of External Affairs (MEA) also weighed in on the matter, emphasizing its legal dimensions. "This is a legal matter involving private firms and individuals and the US Department of Justice. Established procedures and legal avenues in such cases will be followed," said MEA spokesperson Randhir Jaiswal on November 29.

During his address, Gautam Adani highlighted the Group's ability to overcome adversity, referencing similar challenges in the past. He drew parallels with the January 2023 allegations by Hindenburg Research, which had targeted the Group's financial stability and stirred political controversy just as the company was preparing to launch its Follow-on Public Offering (FPO).

Adani described the Hindenburg incident as a "double hit" designed to undermine financial stability and drag the conglomerate into political controversies. "This was further amplified by certain media with vested interests," he remarked.

In response to the Hindenburg allegations, Adani spoke about the several key actions taken by the Group to stabilize its financial standing. He noted the unprecedented decision to return proceeds from India's largest-ever Rs 20,000 crore FPO.

"We then further demonstrated our resilience by raising capital from several international sources and proactively reducing our Debt to EBITDA ratio to below 2.5 times, an unmatched metric in the global infrastructure space," Adani stated. He added that the Group's robust financials are highlighted by all-time record results.

Adani also pointed out that no credit rating agencies, either Indian or international, downgraded the conglomerate during this period. Additionally, he expressed satisfaction with the Supreme Court of India's affirmation of the Group's actions, validating its approach to handling the allegations.

Adani expressed confidence in the Group's ability to weather such storms, framing adversity as a stepping stone to greater resilience. "Every attack makes us stronger, and every obstacle becomes a stepping stone for a more resilient Adani Group," he said.