Legal experts indicate that the U.S. fraud case involving Indian billionaire Gautam Adani is supported by substantial documentation, which could bolster prosecutors’ efforts. However, the likelihood of the tycoon being extradited to face trial shortly remains low.
Last month, federal prosecutors in Brooklyn unveiled an indictment that alleges Adani engaged in bribery of Indian officials to secure agreements for the purchase of electricity generated by Adani Green Energy, a subsidiary of his Adani Group conglomerate. The indictment claims that he misled U.S. investors by disseminating optimistic information regarding the company’s anti-corruption measures.
Adani, his nephew Sagar Adani, and another executive from the Adani Group have been charged with securities fraud and conspiracy. Five individuals connected to Azure Power Global, a company previously listed in the U.S. and reportedly implicated, have been charged with conspiracy to breach the Foreign Corrupt Practices Act (FCPA).
Azure has stated that it fully cooperated with the investigation, confirming that the company no longer employs the individuals charged. The Adani Group has dismissed the allegations as “baseless” and has pledged to pursue “all possible legal recourse.”
Gautam Adani remains free and is not currently in custody. Since the indictment, he has participated in at least two public events in India, one of which occurred on December 9 and was attended by Prime Minister Narendra Modi.
The indictment reveals prosecutors discovered ledgers of purported payments on Sagar Adani’s mobile device, which they called “bribe notes.” Prosecutors revealed that Gautam Adani sent himself an email containing a copy of a search warrant and a grand jury subpoena that the FBI had issued to his nephew on March 17, 2023.
Experts suggest that the electronic records serve as crucial evidence for prosecutors aiming to establish that Sagar Adani and Gautam Adani were aware of their misleading actions towards investors. This includes their failure to disclose an ongoing investigation while asserting the strength of their anti-corruption practices despite bribery allegations.
“The allegations feature mentions of supporting evidence, which typically strengthens the case,” stated Stephen Reynolds, a former federal prosecutor and current partner at the law firm Day Pitney.
Prosecutors are likely to encounter significant challenges ahead. According to Paul Tuchmann, a former federal prosecutor in Brooklyn and current partner at law firm Wiggin & Dana, Gautam Adani might contend that he did not play a direct role in formulating the statements the company issued to investors regarding its anti-bribery practices.
Prosecutors in India could face challenges in obtaining live testimony from witnesses, as the process may necessitate support from New Delhi. There are concerns that the government might be hesitant to facilitate testimony that could portray Indian officials negatively, according to Mark Cohen, a former federal prosecutor in Brooklyn and current partner at Cohen & Gresser.
On Friday, India’s foreign ministry addressed a statement made on November 29, indicating that it had not received any requests regarding the case from Washington. The ministry characterised the matter as involving private firms and the U.S. Justice Department.
The U.S. Justice Department refrained from providing any comments regarding whether the United States had requested India for the extradition of Gautam Adani.
Recently, the Adani Group and its founder have publicly asserted that no executives within the conglomerate have faced charges for violating the Foreign Corrupt Practices Act (FCPA).
Violating the Foreign Corrupt Practices Act through conspiracy can result in a prison sentence of up to five years. The fraud charges against Gautam Adani and the other defendants from the Adani Group carry potential penalties of up to 20 years in prison for each count.
Drew Rolle, the deputy chief of the business and securities fraud section at the Brooklyn U.S. Attorney’s office, emphasised the office’s duty to safeguard the integrity of U.S. capital markets.
The office has achieved several convictions in foreign bribery cases linked to the United States. In August, a jury convicted Mozambique’s former finance minister on charges of fraud and conspiracy to launder money, stemming from his embezzlement of loan proceeds that he had claimed were intended for economic development initiatives.
Rolle stated that reputable companies suffer when entities like Adani’s are accused of misleading investors.
“This is not merely a bribery case; it represents a significant securities enforcement case,” he stated during a conference organised by the Practising Law Institute on December 6 in New York. “Accessing our capital markets requires adherence to established regulations.”
