How Adani Group misled Indian stock exchanges on the bribery investigation against it
SEBI is yet to announce any action against the group for denying existence of the investigation to BSE and NSE, despite being aware of it for over a year.
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On March 15, Bloomberg reported that investigators in the United States were examining whether an Adani entity or individuals linked to the group, including promoter Gautam Adani, had paid Indian officials in exchange for favours on a solar energy project.
Two days later, the head of corporate finance for the Adani Group, emailed a lender for a 2021 syndicate loan and a joint bookrunner for a private resale of securities, assuring them that the report was untrue.
The email, on which Gautam Adani’s nephew Sagar R Adani was copied, dismissed the news article as “baseless,” “malicious,” and “defamatory.” Later that day, similar or identical emails were sent by the head of corporate finance to more than a dozen other financial institutions and investors, again copying Sagar R Adani on these communications.
Two days later, the Adani Group also went on to claim to Indian stock exchanges that it had no knowledge of the investigation.
These claims did not pass the truth test.
According to a recently released indictment by US prosecutors, Gautam Adani and senior executives of the Adani Group were at the time being investigated for their involvement in a multi-million dollar bribery scheme intended to secure lucrative solar energy contracts in India, which was allegedly used to mislead investors...
