A five count indictment was unsealed this past week in the United States District Court of the Eastern District of New York. The federal court in Brooklyn charged Gautam S. Adani, Sagar R. Adani and Vneet S. Jaain, executives of an Indian renewable-energy company, with conspiracies to commit securities and wire fraud and Securities Fraud for their roles in a billion dollar scheme to obtain funds from U.S. investors and global financial institutions on the basis of false and misleading statements.
The indictment also charges Ranjit Gupta and Rupesh Agarwal, former executives of a renewable-energy company with securities that had traded on the New York Stock Exchange, and Cyril Cabanes, Saurabh Agarwal and Deepak Malhotra, former employees of a Canadian institutional investor, with conspiracy to violate the Foreign Corrupt Practices Act in connection with a bribery scheme also perpetrated by Gautam S. Adani, Sagar R. Adani and Vneet S. Jaain, involving one of the world’s largest solar energy projects.
The indictment alleges that more than $250 Million in bribes were promised to secure solar enery contracts worth 2 billion dollars over two decades.
The SEC also unveiled a complaint charging Gautam Adani and Sagar Adani, executives of Adani Green Energy Ltd., and Cyril Cabanes, an executive of Azure Power Global Ltd., for conduct arising out of the same massive bribery scheme discussed in the EDNY. complaint. The SEC also alleges that the bribery scheme was orchestrated to enable the two renewable energy companies to capitalize on a multi-billion-dollar solar energy project that the companies had been awarded by the Indian government. During the alleged scheme, Adani Green raised more than $175 million from U.S. investors and Azure Power’s stock was traded on the New York Stock Exchange.
The indictment alleges, among other things:
- There was a FBI raid in March 2023. Gautam Adani failed to inform SEBI and the Indian stock exchange of this FBI raid and the DOJ investigation, which he was required to do. But he also thereafter lied when he denied that either had happened.
- False statements in the annual reports. Guatam Adani emailed himself photographs of the search warrant of his nephew in March 2023. He will be unable to say he was not aware of being investigation at that time.
- False statements to US investors
- When the search was executed on the nephew, Sagar Adani, electronic devices were seized. This will be a treasure trove of data for the government to use in their prosecution. The government cites “bribe notes” that Sagar kept on his phone to track specific details of bribes offered and promised to government officials. It may very well be possible as this case proceeds that a superceding indictment is forthcoming and both Gautam and Sagar Adani will be charged with FCPA violations as well.
- Co-Conspirator #1 and #2 may have cooperated with the government, and thus they may help corroborate what “numero uno” and other code names meant when texting amongst themselves about the conspiracy.
The defendants do not live in the United States, and it appears only one has dual citizenship in the US. So, should any of these defendants enter US soil, they will be immediately detained and transferred to the EDNY for processing. Both Gautam and Sagar Adani have not been arrested yet and US prosecutors would need to ask the Indian government to extradite them under the terms of the countries’ extradition treaty. India would need to consider whether the crime he was charged with in the US is also a crime in India, whether the charges are politically motivated or whether he could face inhumane treatment in the US. As Meg Strickler stated in The Quint, there probably will be a superceding indictment that will include more charges.
Conaway & Strickler, PC handles many bribery cases. Contact us if you need more information or are facing such charges.