A fresh application has been submitted to the Supreme Court, urging Indian authorities to examine allegations made by the United States Department of Justice (DOJ) against Gautam Adani and key executives of the Adani Group. The accusations, brought under the Foreign Corrupt Practices Act (FCPA) and the Foreign Extortion Prevention Act (FEPA), allege that the Adani Group orchestrated a multi-million-dollar bribery scheme to influence Indian officials, compelling Indian companies to purchase solar power from an Adani subsidiary.
The interlocutory application has been filed in connection with an earlier petition seeking an independent inquiry into claims raised by Hindenburg Research against the Adani Group. Advocate Vishal Tiwari, the petitioner, has argued that the serious nature of these allegations warrants immediate investigation by Indian agencies in the national interest.
Highlighting the significance of the issue, the petitioner stated, “The findings of the US Department of Justice and the Securities and Exchange Commission (SEC) shed light on unethical practices within the Adani Conglomerate. These allegations must be probed by Indian authorities to ensure accountability and transparency.”
Pending SEBI Investigation Highlighted
The petitioner also called attention to the ongoing investigation by the Securities and Exchange Board of India (SEBI) into allegations of stock market manipulation and short selling involving the Adani Group. According to the Supreme Court's directive on January 3, 2024, SEBI was advised to complete its investigation "preferably" within three months. However, the petitioner noted that SEBI has yet to present its findings, raising concerns among investors.
"The SEBI must conclude its investigation and present its findings to restore investor confidence. Any connection between the Hindenburg allegations and the charges brought by US authorities should be clarified in the report," the petitioner stated in the application.
Previously, an application by the petitioner seeking an expedited investigation by SEBI was declined by the Supreme Court registry. The registry observed that the Supreme Court's order did not impose a fixed deadline on SEBI and only recommended that the investigation be completed within three months, if possible.
The DOJ’s indictment, filed in a US court last week, accuses Gautam Adani, Sagar Adani, and other executives of bribing Indian officials to favor their solar power business. The application underscores the need for Indian agencies to scrutinize these allegations in parallel with the ongoing SEBI probe, ensuring that any malpractices are thoroughly addressed.
The petitioner concluded by emphasizing that a comprehensive investigation would not only uphold justice but also safeguard the confidence of Indian and international investors in the country’s regulatory systems.
