Bhubaneswar: In a sensational development, the United States Securities and Exchange Commission (SEC) Wednesday charged Adani Group's Chairman Gautam Adani and seven others over a conspiracy to commit securities and wire fraud to obtain funds from US investors and global financial institutions.
As per the indictment document of Unites States District Court, New York, between 2020 and 2024, the renewable energy company, an US based Issuer company, US issuer company’s largest shareholder - a Canadian investor have formulated a scheme to pay over $250 million or Rs 2029 cr in bribes to Indian government officials to lie to investors and banks to raise billions of dollars, and to obstruct justice.
The bribery scheme, as detailed by US District Court New York, reveals that Rs 2029 cr bribe was paid to govt offcials of as many as 5 states - Andhra Pradesh, Odisha, Chhattisgarh, Tamil Nadu and Jammu and Kashmir.
The US SEC has invoked the FCPA to indict the Indian Renewable Energy company - Adani group.
WHAT IS FCPA?
FCPA stands for Foreign Corrupt Practices Act. Under the FCPA, it is unlawful for a U.S. person or company to offer, pay, or promise to pay money or anything of value to any foreign official for the purpose of obtaining or retaining business. The court document cited below.
The court document is detailed below.
WHAT IS THE BRIBERY SCHEME?
YEAR 2020: The court indictment document states that accused persons, including US issuers, have willfully conspired to formulate a corrupt offer, whereby they authorized and promised to pay bribes to government officials in Indian State electricity distribution companies to enter into contract with Solar Energy Corporation of India (SECI) for power purchase from the Adani Renewable Energy Company. Here are the details.
MODUS OPERANDI OF BRIBERY SCHEME
The high energy prices quoted in the Letter of Award (LOA) made it difficult for the SECI to find any prospectus Indian buyer (state distribution companies). As per the LOA, without Power Supply Agreement (PSA), SECI cannot enter into any Power Purchase Agreement with the AGEL and US issuer.
With SECI expressing its inability to execute the LOA, which may result in dashing of hopes for the lucrative deal signed, in 2020, the court document charges Gautam Adani, Sagar Adani, Vneet Jain, and Ranjit Gupta and US Issuer devised a bribery offer scheme officials of State power distribution companies , so that the State distribution utilities would enter into power supply agreements with the SECI. The total amount of bribe offered has been estimated by The US SEC at Rs 2029 cr ($265 mn).
ODISHA LINK
A detailed glance at the court document reveals that AGEL and US Issuer has allegedly paid bribes to the officials of the following State Power Distribution Utilities.
Andhra Pradesh was supplied with 2.3 GW and bribe offered Rs 583 cr ($76mn)
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