BJP is likely to come back to power and Modiji will be again Prime Minister, this news has helped Adani’s stock. The moment one of these stains drops on Adani company. Dalalstreel will quake and stock markets will crumble down. If Adani makes a business deal with any state the opposition will break down. However, the same states that accuse Adani of misconduct and malfeasance still seek Adani’s investments once more. ‘Adani.. Adani.. Adani’. Maybe we have such a strange situation. Adani name is almost synonymous with Indian economy and Indian politics. At the moment there is a case ongoing in America where Gautam Adani, the chairman of Adani Companies is charged. Such is not the case. A very serious case. Do you know why? That they gave a ‘bribe’. But. the point that many people fail to get here is if bribes were tendered to officials in India, why was the case instituted in America? On the same note, when did the Federal Bureau of Investigation- Why did the FBI enter? I found this to be quite an interesting question.
Was it Adani company that offered bribe or otherwise? If so, in which state, to whom and to how much dollars? America has all these details.. with proof. It was captured in an Excel sheet, PowerPoint presentation and phones how many crores of rupees bribe was given to whom. They are all before the American court at the moment. Let’s tell those details too. Otherwise, we have raised a question. That is why there is a case even in America if a bribe was given in India. Until now, it has a very interesting answer.
Foreign Corrupt Practices Act and Its Global Impact on Businesses
In America, there is an economic crime regulation called the Foreign Corrupt Practices Act. Almost two decades ago. However, the cracks that existed in this were sealed and measures were made stricter. According to that law, Anyone that desires to raise funds in America must do so through the production of efficient capital goods or by identifying efficient capital goods to import.’ As I said if it desires to raise funds in the form of loans or through the issue of bonds, the said company must have a clean bill. Of course, even though it’s not American, it has to be squeaky clean as far as its record is concerned. We are operating in many countries of the world today. It does not mean that we will do business in America as well. Based on the Foreign Corrupt Practices Act.. it should be an honest business company. If doing business by giving bribes. ’It might not necessarily be the person giving the bribe is an American, it could be from somewhere else if it is established that they are indulging in the business of bribing they will be arrested in America although they are not Americans. This is what happened in Adani’s case where its stock price fell massively after the shorts posted their negative comments on it.
To be more detailed. Let’s assume there is a Pakistani firm. For instance, the company can expand the business by offering juicy bribes and corruption. This is because if such a company trades in the US it is required to endorse the ‘Foreign Corrupt Practices Act’. To overemphasize the meaning, it means to say ‘We did not corrupt, we did not break the laws, we transacted business honestly’. If it is signed, the US will not abandon it if ever the country is charged with bribery and corruption. Takes serious action. We should also discuss here about the Kia Company which established its motor manufacturing plant in Andhra Pradesh. Contrary to what most people may think, Kia Motors is not an American automaker. It is a South Korean company. When the Kia company was coming to Andhra Pradesh there was a chance to make a ‘Kuda Foreign Corrupt Practices Act’.
The law inquires whether the candidate has received any bribes, in tendering or any other form of influence peddling. Chandrababu Govt was engaged in signing this act when it signed an agreement with Kia Company. Because there was no corruption is what they would tell us. Therefore, Kia agreed to sign the act since they have business in America and they also have facilities in Anantapur. Below we document the accusations that have been made against Adani. The American court says Adani company has been doing business in India and giving bribes to some officials. Hence it is unlawful under the Foreign Corrupt Practices Act. Therefore, an Indian Mr Gautam Adani was sued in America for the charges of bribery in India.
Let’s be more detailed. We will have a look at why the American court needs to proceed to a serious extent against Adani. Adani is not just one firm but it is a conglomerate. This is the list of Adani’s business houses, Adani Enterprises, Adani Ports and SEZ, Adani Green, Adani Total Gas, Adani Energy, and Adani Power. But all these allegations are against ‘Adani Green Energy’ in that group of companies. This Adani Green Energy company planned to issue bonds in America to raise 600 million dollars. That is five thousand six hundred crore rupees in our money. Bonds and loans which have been mobilised amount to 25 thousand crore rupees. When taking such a loan, income should also be shown Adani Green Energy went to the fundraiser by dubbing its business, income and profits. They will not pay all the taxes.
She stated that they have agreed on a solar business which would result in 16 thousand 800 crore rupees profit in 20 years. As the agreements revealed that the policy was making 17 thousand crores of losses, many people were inclined to lend money and purchase company bonds; Canadian investors and investors from other countries were also among them who supported financially to American investors financially. This is where the real kit is located. Even if you want to collect funds like this in America, you need to sign according to the Foreign Corrupt Practices Act. Others who signed included representatives from the Adani group of companies. But, after that, it became clear that they had signed the deals when they agreed to reap a profit of seventeen thousand crores of rupees. Tamely, bribery means ten crores or one hundred crores..! One of the massive claims of the American court is that 2100 crores of rupees were paid as bribes to officials of various states of India.
Bribery Allegations Against Adani Green Energy and SECI Dealings
Thus the question: What is the need to offer the Indian officials inducements? What does Adani Green Energy Limited do? Let’s see those details too. The theme has always been let’s increase the use of green energy in India. This as a part includes the anchoring of solar power plants. ‘Seki’ is that there is a company in the short name of the central government organization ‘SOLAR ENERGY CORPORATION OF INDIA’. This company dates from the late 2000 and states purchase green energy from it. That is electricity produced by the electricity of solar. Essentially, then, there could be no problem if the power is bought from a central government company. Since state governments do not need to pay bribes and corrupt practices to obtain electricity from the central organization. However, with this, there is an issue.
This ‘Seki’ organization cannot produce the required amount of solar energy that can meet the needs of the states. However, SEKI as an agency of central government also purchase power from the private players in the market. That private company is none other than ‘Adani Green Energy’. Among the company that supplies most of the solar power to ‘Seki’, its name is ‘Adani Green Energy’. Thus, if the existing and prospective ‘business’ falls under ‘Seki’ then it is going to be similar to the catastrophe that befell Adani Green Energy out there. Hence, Gautam Adani used to negotiate with the government officials of different states and get them to agree to purchase electricity from this ‘Seki’, the major accusation is that he used to offer bribes to some of these officials or government officials. The different grounds of the case against Gautam Adani are the issue of bribes offered to different states upon agreement of the contract with ‘Seki’. However, New York federal prosecutors accused Gautam Adani of concealing information about providing bribes and making deals.
That is the corrupt officials had made a big case that they have mobilised around 25 thousand crore rupees funds from American as well as International investors using the so-called ‘club of non-corrupt’ mask and feeding the people and giving wrong information. That happened.
Will Gautam Adani be arrested for the wrong done by some other lower-level officials? This question can be heard from many people. But if, for example, the US Securities Exchange Commission take up a case and they determine that a fraud has taken place in it then the case in question will not be so suspicious. In addition, presently, the US Securities Exchange Commission has two Indians, and both are acting directors. Sanjay Wadwa was the Acting Director of SEC Enforcement while Tejal D Shah was responsible for the case. These two are the subjects. till they have proof, till they have papers in their hands.. the matter cannot be taken to this extent, they cannot even attempt to file a case in the SEC.
I appeal to you to consider what the New York federal prosecutors claim, that there is proof that the Adani company gave bribes. The main complaint of the US District Court is how the money collected from the US is provided as a bribe in India. In other words, US Attorney Brian Pease made a pivotal remark about the fact, that if they get money from the American investors, pay the bribes and become adults in India, why don’t they fight? They have also threatened to hold the feet of those who are planning to get rich by jeopardizing the credit of the American markets.
Gautam Adani’s Alleged Involvement in Bribery Scandal
Some of you may be wondering who Gautham Adani has to do with this case what role does he play in the context of the firm? He just ..runs the company doesn’t he give bribes from close quarters? This question is also heard from many people. But do you know what the bomb blasting matter that New York federal prosecutors said What was the statement? Gautham Adani himself went and physically met some officials and political leaders to provide them with bribes. How can you say that? How does the multimedia and its articles and features otherwise come to understand who met who, in India? Any proofs? Will you ask that..! Papers are not activities of the four papers; they are what is with America. The real picture of who was given how many crores of rupees bribe, to which state, to which official and to which political leader are known.
There is also a suggestion that Gautam spoke to others privately about Adani under code names including ‘Numero Uno ‘ and ‘Big Man’ in the bribery case but never called him. This case is not there. We also have accusations levelled against Adani Green Energy from 2022. Well, they have been making serious inquiries since then. At such a time. Sagar Adani, a cousin of Gautham Adani, was wrestled from his cell phone. It is said that there is a history of all offering bribes to whom.
RIYOST Investigator said that there is information about how much bribe was paid out to whom and what accounts are on the cell phone of a man called Vineet S. Jain. Several sources reported a certain Rupesh Agarwal who allegedly saved the form of a bribe in PowerPoint and Excel. All these evidences are with the US District Court. If there is no evidence, it will be nearly impossible for the American Federal Bureau of Investigation even to begin pointing a finger.
There is a civil case that has also been preferred in India. This case is filed by Sebine himself. I recently read that Adani Green Energy has accused Adani Green Energy of fraudulently obtaining more than 175 million dollars from American investors in accordance with the rules enshrined in the US securities law. It has asked the regulators to investigate their actions, and besides that come up with fines and sanctions against the company.
In the same breath, the opposition has called for action and the arrest of Adani. In light of these accusations, Adani Group made a statement. Besides, it has asserted that they have not offered any bribe to anyone to obtain solar power contracts. The US said that the prosecutors who made the allegations provided no proof to support their claims. Since it needed to justify that all the businesses they do follow the laws it said so. It has also added certainty that it will move legally on the case in the US District Court.
When a company gets tainted. then the spoilt is not all. Therefore, the shares of Adani group companies have badly declined as soon as these allegations surfaced. The organization’s market capitalization has come down to 2 and a half lakh crore rupees. Gautam Adani’s net worth has been reduced by one lakh crore rupees. Not only now. In the past, the Adani Group faced their biggest blow when it received allegations from a U.S.-based research firm known as Hindenburg. Hindenburg produced a shocking report that alleged the Adani Group engaged in massive manipulations to fuel the share prices of its seven exchange-listed firms.
The outrage was that the share prices, while up, the firms had been securitized and leveraged up. He was then charged with stock manipulation together with charlatan accounting fraud. But Adani’s firm dismissed all the accusations made by Hindenburg. Like all other businessmen in India, even the Adani Group was cleared by Sebi after the investigation was made. However. there was a lot of criticism on giving a clean chit like this. Hindenburg pulled out another accusation that Sebi chairperson Madhavi Puri Bach has an interest in Adani Group’s offshore funds. That is why the opposition has roundly condemned Sebi for clearing Adani’s shinning credentials. But there the matter was concluded, or at least it was settled to a large extent as will be seen presently. The present claims are more severe than the earlier accusations. Issuers of bribes to officials and politicians for solar power contracts are enormous. The opposition is not going to sit back and watch this issue fade away. To this YSR MLC Kavitha has already responded. This corrupt cop arrested him even when he knew there was nothing wrong despite not being an Adani, he demanded to know why Adani was not arrested when there was ample proof.
On the other hand, it is said that there is going to be serious action from the US District Court. Already. Some media has reported that besides Gautam Adani and Sagar Adani, arrest warrants have been issued for Adani Green Energy officials and Vineet Jain. On the other hand, there is an agreement between America and India. Under that treaty.. besides the criminals, the accused in such circumstances also need to be surrendered. In that case, the big question is are they would be gutsy enough to extradite Gautam Adani to the US government as part of the deal.
I think one more thing should be said here. It is predicted that, on January 20, Trump is going to assume office of Presidency of the United States of America. Following the win, Gautam Adani went to Twitter to say he would spend 10 billion USD in America soon to create 15, 000 employments as he congratulated Trump. Trump also said that he will make green energy. Adani has been backing him with words of encouragement, “I will assist you in your campaigns”. Whether action shall be attempted against Gautham Adani in these conditions is still a matter of debate. Trump told in the course of an election campaign that he was going to eliminate the US Attorney posts. Therefore, whoever said that serious action should be taken against Adani, there is also the hope of not coming across Attorney General Brian Pease. In other words, even if this case is serious, it does not appear to be concluded now. Economists are convinced that another Hindenburg has occurred and quickly spread like a typhoon that is now approaching the shore.
