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The Gautam Adani bribery affair rocked Parliament on the first day of the Winter Session, Monday – November 25, 2024. The pandemonium resulted in both houses of Parliament being adjourned till Wednesday although discussion on the issue was not allowed, as expected.
The Indian businessman Adani has filed a plea against the US authorities who have charged him with specific offences and issued a warrant for his arrest to proceed with the prosecution.
The US has accused Gautam Adani, and seven others (his nephew Sagar included), for paying about US$ 265 million bribe to Indian government officials to obtain contracts for developing India's largest solar power plant; yielding US$ 2 billion profit over 20 years. Also, the Adanis and Vineet Jain, former CEO Adani Green Energy, are accused of raising US$ 3 billion plus in loans and bonds by allegedly hiding their corruption from lenders and investors.
Reuters reports that Gautam Adani, Sagar, and Jain are charged with securities fraud, securities fraud conspiracy and wire fraud conspiracy; The Adanis are also charged under the US Securities and Exchange Commission (SEC); the other five defendants areccharged with conspiring to violate the Foreign Corrupt Practices Act; four are charged for conspiring to obstruct justice. According to Reuters the prosecutors are planning to hand the arrest warrant to foreign law enforcement.
The news came simultaneous to a Canadian government statement saying there is no evidence linking Prime Minister Modi, Minister Jaishankar or National Security Advisor Ajit Doval to serious criminal activity within Canada.
The Adani Group has said that the charges by the US authorities are baseless. The political storm in India is more because Gautam Adani, the richest billionaire, is very close to Prime Minister Narendra Modi, which is why there are posts and memes on social media showing the entire Indian machinery going overboard to “save” Adani. The opposition is demanding strict action against the accused – arrests, prosecutions, whatever.
The social media is abuzz with pro- and anti- Adani posts. He is being called “India’s George Soros” working for PM Modi. Others wonder why it is a big deal to bridge government officials? A veteran-Colonel close to the establishment writes that bureaucrats in India have total control on the government from the District to the Cabinet.
Then there are write ups accusing America’s “deep state’ of concocting the whole case - like accusing India for the plot to kill American-terrorist Gurpatwant Singh Pannun- to unduly pressurize India. These point to the ‘timing’ of the cases. Another question being raised on social media is the extraterritorial jurisdiction being used by the American authorities since the bribes were paid in India.
So, what really is the case? Gautam Adani visited America, partnered with ‘Azure Power’ (listed in US stock market) and raised around US$ 3 billion plus from US investors for setting up India’s largest solar plant. But US$ 265 million out of American investors’ money was reportedly paid to bribe Indian government officials to get contracts worth US$ 2 billion in the Indian solar energy sector. Investigations by the FBI and SEC marked the bribery as fraud against “American investors” and the US Justice Department’s Grand Jury filed charges and issued a warrant against Adani. The two-year investigation also revealed that Adani misled India’s market regulator SEBI.
According to an Indo-American heading a company in the US, the concerned Act is a pretty tough one which gives the US the right to go after anyone who raises $ funds. He cites a case of a firm which was similarly audited in Russia, and another company was twice fined hundreds of millions of dollars for violations - primarily bribing government officials in countries like Hungary and Russia.
The charge is that Adani used US investors' money for the alleged bribes. White House Press Secretary Karine Jean-Pierre said on November 21 that the administration was aware of the charges against Adani. She also expressed confidence about continuing to “navigate this issue”.
There is speculation whether the personal rapport between President Donald Trump and Prime Minister Narendra Modi can resolve the issue.
Questions are also being raised if the FBI-SEC investigation can be turned on its head saying Adani used money from elsewhere to pay the money, not funds taken from US investors? But that is America, not India. The ‘hush money’ case against Donald Trump will continue after his coming presidency ends, unless Stormy Daniels withdraws all allegations.
Meanwhile, India is the safest place for Gautam Adani and the rest of the accused. Law can continue taking its course and under Trump, Indo-US relations will continue to grow even though stocks of the Adani Group may somewhat suffer especially as the French energy giant ‘Total’ has already put investments by the Adani Group on hold.
Lt General Prakash Katoch (Retd) is an Indian Army veteran. The views expressed here are the writer’s own.
