According to a court filing, Indian billionaire Gautam Adani, who is charged with bribery in the United States, has been summoned by the U.S. Securities and Exchange Commission in connection with a shocking federal indictment against him.
Claiming they bribed hundreds of millions of dollars to support an Adani subsidiary while “falsely touting the company’s compliance with antibribery principles and laws in connection with a $750 million bond offering,” the SEC is suing the CEO of the Adani Group and his nephew Sagar Adani.
According to the filing made Wednesday in federal court in the Eastern District of New York, the summons must be answered within 21 days. The SEC lawsuit requests limitations on the Adanis’ ability to serve as officials of publicly traded firms as well as undisclosed financial penalties.
A Reuters request for comment on Sunday was not immediately answered by Adani Group executives.
The criminal allegations have been rejected by the organization as “baseless.” According to the group CFO, no other companies within the conglomerate were charged with misconduct, and the indictment is related to a single contract of Adani Green Energy that accounts for around 10% of its operations.
On the grounds that Gautam and Sagar Adani were involved in a $265 million plan to bribe Indian authorities in order to gain power-supply deals, federal prosecutors filed arrest warrants for them.
In order to get contracts that are anticipated to generate $2 billion in profit over a 20-year period and build India’s largest solar power plant project, Adani and seven other defendants, including his nephew Sagar, allegedly colluded to bribe Indian government officials.
The ports-to-power complex, which was created by Adani, 62, one of the richest persons in the world, has experienced its second crisis in two years. Immediate repercussions included the president of Kenya canceling a large airport project with the Adani Group and billions of dollars being deducted from the market value of Adani Group firms.
