(MENAFN) India's Adani Group has vehemently refuted claims of being under investigation by the United States Department of Justice (DOJ) for alleged bribery, dismissing reports as "false." In an exchange filing on Monday, the conglomerate, led by tycoon Gautam Adani, asserted that it had not received any notice from the DOJ regarding such allegations.
The denial comes in response to a Bloomberg report, citing undisclosed sources, which suggested that United States prosecutors were broadening their inquiry into the Adani Group to scrutinize potential bribery activities. The report further indicated that investigators were examining whether the conglomerate had engaged in bribery and scrutinizing the conduct of its founder.
Central to the allegations were assertions that an Adani Group entity might have made payments to officials in India to secure favorable treatment for an energy project. The report stirred speculation about the involvement of Adani Group in illicit activities, prompting significant scrutiny from both media and investors.
Moreover, Bloomberg's report raised concerns about the potential involvement of Indian renewable energy firm Azure Power Global Ltd, founded by Indian-American entrepreneur Inderpreet Wadhwa in 2007. Azure Power, a prominent player in India's renewable energy sector, notably became the first Indian renewable energy company to list on the New York Stock Exchange (NYSE) in 2016.
According to Bloomberg's sources, the investigation was being handled by the United States Attorney's Office for the Eastern District of New York and the Justice Department's fraud unit in Washington, indicating the seriousness of the allegations. Following the publication of the report, Adani Group-owned companies witnessed a substantial decline in their share prices, marking their most significant drop in over a year.
The Adani Group's swift denial underscores the seriousness with which it addresses allegations of impropriety. As media speculation continues to swirl, the conglomerate remains steadfast in its assertion of innocence, emphasizing its commitment to ethical business practices. However, the allegations and subsequent market reaction highlight the potential reputational risks faced by conglomerates operating on a global scale and the importance of transparent corporate governance in mitigating such risks.
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