New Delhi: US Ambassador to India Eric Garcetti was all praise for Adani Green Energy and stressed the importance of bilateral partnerships for a more sustainable future just a few months before the US Department of Justice and Security Exchanges Commission (SEC) indicted members of the conglomerate a couple of days ago.
Eric Garcetti visited the Khavda renewable energy facility in Gujarat—an Adani Group project likely to be completed by 2030—on 16 July this year.
The visit came just a few months after Bloomberg News reported on 15 March this year that US prosecutors were probing whether Adani-related entities or individuals, including its chairman, were involved in bribery to secure preferential treatment on an energy project.
Later, the US ambassador posted about his visit on X, along with pictures.
“Inspired by my visit to the Khavda Renewal Energy Facility in Gujarat, where I learned about @AdaniGreen’s innovative projects advancing India’s zero-emissions goals,” Garcetti wrote. “Sustainable energy is a cornerstone of environmental stewardship, and our bilateral partnership is key to shaping the solutions for a cleaner and greener future for the region and the world. #USIndiaFWDforthePlanet.”
A few months on, the US DOJ and SEC accused Gautam Adani, his nephew Sagar Adani and executives of Adani Green Energy for their conduct arising out of a “massive bribery scheme” along with Cyril Cabanes, ex-employee of Canadian investment firm CDPQ, the top stakeholder of renewable energy firm Azure Power.
“According to the SEC’s complaint, Gautam and Sagar Adani orchestrated a bribery scheme that involved paying or promising to pay the equivalent of hundreds of millions of dollars in bribes to Indian government officials to secure their commitment to purchase energy at above-market rates that would benefit Adani green and Azure Power,” said the SEC in its statement Wednesday.
The accusations wiped out nearly Rs. 2.6 lakh crore from Adani’s market cap Thursday and, on Friday, the group lost another Rs 35,000 crore despite some of its stocks showing some recovery.
The Adani Group companies have been one of the most active Indian firms in acquisitions abroad but had to cancel a $600 million international bond issue and have lost contracts worth $3 billion in Kenyan joint ventures since the indictment.
The indictments have alleged that the Adani Group and its subsidiary Adani Green Energy “falsely” stated in media and stock exchange filings that they did not know about the investigation by US authorities into Gautam Adani.
The indictments have opened the conglomerate to possible action by the Security and Exchanges Board of India as reported by ThePrint earlier.
SEBI’s action could include banning the trading of stocks listed by Adani, seizure of some assets and even banning company executives from accessing the stock market.
(Edited by Madhurita Goswami)
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