Gautam Adani
Credit: PTI Photo
New Delhi: US prosecutors and the Securities and Exchange Commission (SEC) have indicted Adani Group chairman Gautam Adani, his nephew Sagar Adani and six others in a $265 million (about Rs 2,200 crore) bribery case.
While the case involves bribes offered or paid by Adani to Indian government officials for securing favourable contracts for Adani Green Energy and another Indian company Azure Power, the action is happening in the US due to the involvement of investors there.
In the indictment, the prosecutors alleged that the Adanis and others defrauded American investors through corrupt practices and concealment of critical information from investors and financial institutions.
“This indictment alleges schemes to pay over $250mn in bribes to Indian government officials. These offences were allegedly committed by senior executives and directors to obtain and finance massive state energy supply contracts through corruption and fraud at the expense of US investors,” US deputy assistant attorney-general Lisa Miller said.
The civil charges include securities fraud and wire fraud conspiracy, while the criminal charges relate to violations of the Foreign Corrupt Practices Act.
Under American law, an indictment is a formal written accusation of a crime prepared by a prosecuting authority. Generally, during an indictment proceeding, prosecutors present evidence to a grand jury. The grand jury issues an indictment when it determines that there is sufficient basis for bringing criminal charges against a suspect.
The indictment against the Adanis and others has been issued by the United States District Court for the Eastern District of New York. This indicates that prosecutors have presented sufficient evidence to justify criminal proceedings. However, it is not a conviction. The accused remain innocent until proven guilty in court.
What next?
The case will now move to the “arraignment” stage. Under US law, arraignment is the first step in a criminal proceeding where the defendant hears the charges and enters a plea. Judges will communicate the charges and decide on bail. The accused will plead guilty or not guilty. If they plead not guilty, the case proceeds to a jury trial.
The case may lead to international travel restrictions and arrests. According to Reuters, arrest warrants have been issued against Adani and others. US authorities may also freeze their funds or assets.
India has reciprocal extradition arrangements with the US. This means the US may pursue extradition if required. However, as per the treaty signed between the two countries in 1997, an “offence is extraditable if punishable under the laws in both contracting parties by imprisonments for more than one year or by a more severe penalty”. This means Indian courts would need to evaluate the validity of the charges before extradition can occur.