Gautam Adani Addresses Public, Vows Resilience Amid US Allegations and Indictment
Mumbai: Breaking his silence after recent allegations and his indictment in the United States, Adani Group Chairman Gautam Adani addressed the 51st Gems and Jewellery Award on Saturday. He reaffirmed the conglomerate’s commitment to compliance and resilience in the face of adversity, stating, “Every attack makes us stronger.”
Adani referred to allegations brought less than two weeks ago by the US Department of Justice and the Securities and Exchange Commission (SEC). On November 20, 2024, the agencies filed charges of securities fraud, wire fraud, and violations of SEC guidelines against Gautam Adani, Sagar Adani, and Vneet Jaain, key executives of Adani Green Energy Ltd (AGEL).
The indictment alleged misleading statements in AGEL’s bond offering documents concerning anti-bribery and anti-corruption policies. Adani Group has denied these claims, calling them baseless and pledging to defend itself legally.
At the event, Adani emphasized that no charges of violating the Foreign Corrupt Practices Act (FCPA) or conspiring to obstruct justice had been proven against the group. He remarked, “In today’s world, negativity spreads faster than facts,” but reiterated the group’s “absolute commitment to world-class regulatory compliance.”
The controversy has had financial repercussions. AGEL canceled a $600-million bond issue on November 21, just hours after the indictment was made public. The bond, initially oversubscribed threefold, aimed to fund renewable energy projects.
Stocks of Adani Group companies suffered sharp losses, wiping out $26 billion (₹2.19 lakh crore) in market value, more than double the losses incurred during the Hindenburg report controversy in January 2023. However, group stocks have shown recovery since Wednesday, with Adani Green Energy and Adani Energy leading gains on Friday.
Reflecting on the group’s challenges, Adani said, “The roadblocks we face are the price of pioneering… But it is precisely in that scrutiny that you must find the courage to rise.”
Adani recounted the setbacks faced in the past, including the fallout from the Hindenburg Research report, which accused the group of stock manipulation and accounting fraud. He described it as a “double hit,” targeting financial stability and dragging the group into political controversies. Despite the challenges, he highlighted the group’s resilience, including the return of proceeds from India’s largest-ever follow-on public offering (FPO) and the successful reduction of its debt-to-EBITDA ratio.
Addressing long-standing challenges, Adani recalled the decade-long resistance faced while developing a coal mine in Australia, funded entirely through equity. He framed the achievement as a testament to the group’s resilience and commitment to energy security for India.
Adani concluded his speech by urging businesses to embrace sustainability, technology, and innovation. He emphasized the need to empower skilled workers and equip the next generation to balance tradition with transformation and legacy with sustainability.
The Adani Group, despite significant hurdles, continues to assert its position as a pioneering force in various sectors, navigating scrutiny and setbacks with a focus on resilience and growth.
