The U.S. Securities and Exchange Commission has issued a subpoena to Gautam Adani, the Indian billionaire indicted on U.S. bribery charges related to a federal bombshell indictment, court filings show. .
The SEC indicts the head of the Adani Group and his nephew Sagar Adani, alleging they “received hundreds of millions of dollars in bribes to support Adani companies in connection with a $750 million financing.” The lawsuit alleges that the company falsely advertised its compliance with anti-bribery principles and laws. Issue of corporate bonds. ”
The subpoena requires a response within 21 days, according to a filing Wednesday in federal court in the Eastern District of New York. The SEC’s lawsuit seeks unspecified financial penalties and restrictions on Mr. Adanis from serving as a director of publicly traded companies.
Representatives for Adani Group did not respond to Reuters’ requests for comment on Sunday.
The group denies the criminal charges, calling them “baseless.” The group’s chief financial officer said the charges relate to one Adani Green Energy contract, which accounts for about 10% of its business, and that other companies within the conglomerate have been accused of wrongdoing. He said he has not been charged.
Federal prosecutors have issued arrest warrants for Gautam and Sagar Adani for their roles in a $265 million scheme to bribe Indian officials to secure power supply deals.
Adani and seven other defendants, including his nephew Sagar, have been awarded a contract worth $2 billion over 20 years to develop India’s largest solar power project, authorities said. He allegedly agreed to bribe Indian government officials.
The crisis is the second in two years to hit the ports and power generation conglomerate founded by Adani, 62, one of the world’s richest men. The impact was felt immediately, as billions of dollars were wiped out of the market value of the Adani group of companies and Kenya’s president canceled a major airport project with the group.
