U.S. lawyers said the fraud case against billionaire Gautam Adani appears to be backed by documents that could help prosecutors present strong evidence, Reuters reported on Monday.
But they did not expect the Indian businessman – one of Asia’s richest men – to be extradited and face trial on suspicion of bribery or fraud soon, after highlighting potential issues related to the case.
Delhi also said it had not taken any action to extradite Adani.
Also read: India takes steps to restrict imports of Chinese solar cells
Federal prosecutors in Brooklyn unsealed an indictment last month saying Accused Adani of bribing Indian officials Convince them to buy electricity produced by Adani Green Energy, a subsidiary of the Adani Group, and then mislead U.S. investors by providing reassuring information about the company’s anti-corruption practices.
Adani, his nephew Sagar Adani and another Adani Group executive were charged with securities fraud and conspiracy. Five people from former U.S.-listed company Azure Power Global, who were also allegedly involved, were charged with conspiracy to violate Foreign Corrupt Practices Act (Foreign Corrupt Practices Act).
Azure said it is cooperating with the investigation and that those charged no longer work at the company. Adani Group called the accusations “baseless” and vowed to seek “all possible legal recourse.”
Gautam Adani was not detained. Since the indictment, he has made at least two public appearances in India, including an event on December 9 where Prime Minister Narendra Modi also attended.
“Bribery Notes”
According to the indictment, prosecutors found a ledger of alleged payments on Sagar Adani’s phone, which they called “bribery notes.” Prosecutors also said Gautam Adani emailed himself a copy of the FBI search warrant and grand jury subpoena issued to his nephew on March 17, 2023.
Experts say the electronic records could be key evidence as prosecutors try to prove that Sagar Adani and Gautam Adani knew they were misleading investors. They have not disclosed the findings and insist they have strong anti-corruption practices. , when in fact they had paid bribes.
“These charges contain references to corroborating material, which always provides stronger evidence,” said Stephen Reynolds, a former federal prosecutor and current partner at the Day Pitney law firm.
To be sure, prosecutors may face challenges.
Paul Tuchmann, a former federal prosecutor in Brooklyn and now a partner at Wiggin & Dana, said Gautam Adani may argue that he was not personally involved in drafting the company Statement to Investors Regarding Anti-Bribery Practices.
Mark Cohen, a former federal prosecutor in India, said prosecutors may also have difficulty obtaining live testimony from Indian witnesses because the process may require assistance from New Delhi and the government may be reluctant to provide testimony that may adversely affect Indian officials. Brooklyn, currently a partner at the law firm Cohen & Gresser.
India’s Ministry of Foreign Affairs on Friday referred to a November 29 statement in which it said it had not received any request from Washington regarding the case and described the case as a matter between a private company and the U.S. Department of Justice.
The U.S. Justice Department declined to comment on whether the U.S. is asking India to extradite Gautam Adani.
“Follow the rules”
The Adani Group and Adani itself have recently issued public statements emphasizing that the group’s senior executives have not been accused of violating the FCPA.
Conspiracy to violate the FCPA is punishable by up to five years in prison. Gautam Adani and other defendants in the Adani Group face fraud charges that carry a maximum penalty of 20 years in prison each.
Drew Rohr, deputy chief of the Commercial and Securities Fraud Section of the U.S. Attorney’s Office in Brooklyn, said his office has a responsibility to protect the integrity of U.S. capital markets.
The office has resulted in multiple convictions in foreign bribery cases with ties to the United States. In August, a jury found Mozambique’s former finance minister guilty of fraud and money laundering conspiracy for misappropriating proceeds from loans he told banks to use for economic development projects.
Rohr said honest companies are harmed when companies like Adani are accused of misleading investors.
“This is not only a bribery case, but an important securities practice act,” he told a conference in New York on Dec. 6 hosted by the Institute for Legal Practice. “If you’re going to access our capital markets, you have to follow the rules.”
- Reuters Minor editing by Jim Pollard
See also:
Adani case exposes flaws in India’s clean energy push
Adani bonds in trouble, India’s parliament shuts down over bribery scandal
Bangladesh wants legal help investigating Adani, power deals
Adani scandal raises risks for global banks and India’s renewable energy development
India’s solar and wind power surge in pursuit of green goals
Indian oil tycoon says new energy sources will be as profitable as refineries
Climate change ‘fuels’ rainfall, triggering deadly landslides in India
India is now the world’s third largest solar power generator
China’s solar industry faces years of oversupply and low prices
