ADVERTISEMENT

International

Adani Says His Empire Will Emerge Stronger After US Bribery Case

The Adani Group headquarters in Ahmedabad, India, on Friday, Nov. 22, 2024. Most Adani Group stock rebounded, led by the green energy unit, after US prosecutors' charges of bribery against founder Gautam Adani erased $27 billion from the conglomerate's market value on Thursday. Photographer: Anindito Mukherjee/Bloomberg (Anindito Mukherjee/Bloomberg)

(Bloomberg) -- Indian billionaire Gautam Adani struck a combative tone in his first public remarks since US prosecutors indicted him for an alleged $250 million bribery scheme, saying “every attack” makes his conglomerate stronger.

In his first appearance since the indictment became public on Nov. 21, Asia’s second-richest man said he’s working through the legal process “to reconfirm our absolute commitment to world-class regulatory compliance.”

“This is not the first time we have faced such challenges,” Adani said in prepared remarks to a jewelry award ceremony in Jaipur, India, on Saturday. “What I can tell you is that every attack makes us stronger and every obstacle becomes a stepping stone for a more resilient Adani Group.”

The indictment has roiled Adani stocks, prompted Adani Green to scrap a $600 million dollar bond and triggered a query from India’s market regulator. US prosecutors allege Adani and associates lied to US investors about their anti-bribery practices while promising more than $250 million in bribes to Indian officials to win solar-energy contracts.

Adani company executives are charged with three fraud counts. Other defendants are charged with violating the Foreign Corrupt Practices Act, which bars US-linked entities from bribing foreign officials.

Adani on Saturday blamed “a lot of the vested reporting” for spreading “negativity” about the nature of the US charges. Adani Group has denied allegations of misconduct by its executives and said it would defend itself in court. 

He also cited a “short-selling attack initiated from abroad” — a reference to a Hindenburg Research report in January 2023 — which alleged wide-ranging corporate fraud, causing a plunge in its companies’ shares. The Adani Group denied any wrongdoing.

The challenges “have made us tougher,” Adani said in his prepared remarks. 

The Indian government has distanced itself from the controversy and said the two countries did not discuss the matter. “We see this as a legal matter involving private firms and individuals and the US Department of Justice,” said Randhir Jaiswal, a spokesperson for India’s External Affairs Ministry Friday. 

“We have not been informed in advance on the issue. We have not had any conversation also on this particular matter with the US government,” Jaiswal said, adding that any requests by a foreign government for service of summons or an arrest warrant are a part of mutual legal assistance that are examined on their merits. “We have not received any request on this case from the US side.”

FCPA investigations can typically take years.

Adani Green said on Wednesday it faces yet to be determined monetary penalties under a civil complaint. The group said separately that it suffered an erosion of nearly $55 billion in market value across 11 listed companies after the US indictment.​

--With assistance from Anup Roy.

(Recasts lead, adding Indian government comment on the issue)

©2024 Bloomberg L.P.