A new petition was filed before the Supreme Court on Sunday, urging it to take note of the bribery and fraud charges leveled against Gautam Adani and seven of his associates by US authorities. The petition also raises concerns about the Securities and Exchange Board of India (SEBI)’s handling of the matter, particularly its investigation into Hindenburg Research’s allegations against the Adani Group.
What Does the Petition Say?
The petition highlights that, despite the Supreme Court’s order from January 3, 2024, SEBI has yet to submit any findings or reports regarding its investigation. This delay, the petition argues, has undermined confidence in SEBI’s role as a regulatory authority. It states, “When the investigation report is not filed, it reduces trust in SEBI’s ability to act.”
Recent Developments
This application follows a recent inquiry by SEBI into allegations that Adani Green Energy, a subsidiary of the Adani Group, failed to disclose an ongoing investigation into an alleged bribery scheme. The investigation centers on claims that the group paid bribes to secure lucrative solar energy contracts in India. SEBI is currently awaiting further reports from Indian stock exchanges before deciding on a formal investigation.
US Bribery Case: Key Charges
In a related development, Gautam Adani and seven executives from his conglomerate were indicted in New York this week. The US authorities accuse them of being involved in a $265 million bribery scheme aimed at securing solar energy contracts in India. The contracts were expected to generate $2 billion in profits over 20 years.
Additional Charges
The US Securities and Exchange Commission (SEC) has filed separate charges against the Adani Group and Cyril Cabanes, an executive at Azure Power Global. The SEC claims that the group issued false statements to secure $2 billion in loans and bonds. However, the Adani Group has firmly denied all allegations, calling them “baseless.”
SEBI’s Role Under Scrutiny
The latest bribery charges have intensified scrutiny of the Adani Group, which was already facing allegations of using offshore tax havens. These earlier allegations were raised by Hindenburg Research, a US-based short-seller, which had also accused SEBI of failing to take action on the matter.
In August 2024, Hindenburg accused SEBI Chairperson Madhabi Puri Buch of having ties to offshore funds linked to the Adani Group, citing whistleblower documents. Hindenburg claimed that Buch had a conflict of interest due to previous investments in the group. Both Buch and SEBI have denied these allegations, calling them groundless.
Key Points:
- Supreme Court petition filed over US bribery charges against Gautam Adani and his associates.
- SEBI was criticized for the delayed investigation into the Adani Group’s activities.
- Adani Green Energy faces allegations of bribery to secure solar contracts.
- US SEC charges the group with issuing false statements for $2 billion in loans.
- Hindenburg Research raises questions about SEBI’s neutrality in the matter.
