US Case Against Gautam Adani Strong, Extradition Unlikely.
The fraud case in the United States against Indian billionaire Gautam Adani appears to be supported by documentation that could enable prosecutors to build a compelling case, according to legal experts.
However, it is improbable that the tycoon will be extradited to face trial in the near future. Last month, federal prosecutors in Brooklyn revealed an indictment that accuses Adani of bribing Indian officials to persuade them to purchase electricity generated by Adani Green Energy, a subsidiary of his Adani Group conglomerate.
Additionally, he is alleged to have misled U.S. investors by providing false assurances regarding the company’s anti-corruption measures. Adani, along with his nephew Sagar Adani and another executive from the Adani Group, has been charged with securities fraud and conspiracy. Furthermore, five individuals associated with Azure Power Global, a company that was previously listed in the U.S. and is also implicated, have been charged with conspiracy to violate the Foreign Corrupt Practices Act (FCPA).
Azure has stated that it has fully cooperated with the investigation and confirmed that the individuals charged are no longer employed by the company.
The Adani Group has dismissed the allegations as “baseless” and has committed to pursuing “all possible legal recourse.” Gautam Adani is not in custody and has made at least two public appearances in India since the indictment, including an event on December 9 that was also attended by Prime Minister Narendra Modi.
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The indictment reveals that prosecutors discovered ledgers of the alleged payments on Sagar Adani’s mobile device, which they referred to as “bribe notes.” Additionally, prosecutors indicated that Gautam Adani had emailed himself a copy of a search warrant and grand jury subpoena that the FBI had issued to his nephew on March 17, 2023.
These electronic records may serve as crucial evidence for prosecutors aiming to demonstrate that Sagar Adani and Gautam Adani were aware they misled investors by not disclosing the investigation while asserting that they maintained robust anti-corruption practices, despite having engaged in bribery, according to experts. “
The allegations include references to corroborating material, which typically strengthens the case,” remarked Stephen Reynolds, a former federal prosecutor and current partner at the law firm Day Pitney. However, prosecutors may encounter difficulties. Gautam Adani could contend that he was not directly involved in formulating the statements made to investors regarding the company’s anti-bribery practices, noted Paul Tuchmann, a former federal prosecutor in Brooklyn and now a partner at the law firm Wiggin & Dana. Furthermore, securing live testimony from witnesses in India may pose challenges for prosecutors, as this process could necessitate assistance from New Delhi, which may be hesitant to facilitate testimony that could portray Indian officials unfavorably, according to Mark Cohen, a former federal prosecutor in Brooklyn and current partner at the law firm Cohen & Gresser.
India’s foreign ministry stated on Friday that it had not received any extradition request from Washington regarding the case, reiterating that it is a matter involving private companies and the US Justice Department. The US Justice Department refrained from commenting on whether a request for the extradition of Gautam Adani had been made.
Both the Adani Group and Gautam Adani have recently issued statements asserting that the executives of the conglomerate have not been charged with any violations of the Foreign Corrupt Practices Act (FCPA). Conspiracy to breach the FCPA can result in a prison sentence of up to five years. The fraud allegations against Gautam Adani and other defendants from the Adani Group carry potential penalties of up to 20 years in prison.
Drew Rolle, the deputy chief of the business and securities fraud section at the Brooklyn US Attorney’s office, emphasized the office’s duty to uphold the integrity of US capital markets. The office has achieved several convictions in cases of foreign bribery linked to the US. In August, a jury convicted Mozambique’s former finance minister on charges of fraud and money laundering conspiracy for misappropriating loan funds that he had claimed were intended for economic development initiatives. Rolle remarked that legitimate companies suffer when entities like Adani’s allegedly deceive investors.
“This case transcends bribery; it is a significant securities enforcement matter,” he stated at a conference hosted by the Practicing Law Institute in New York on December 6. “If you wish to engage with our capital markets, adherence to the rules is imperative.” The fraud case against Gautam Adani appears to be supported by substantial evidence, including emails, financial ledgers, and “bribe notes,” which could strengthen the prosecution’s claims of bribery and securities fraud.
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Legal experts suggest that while the case is compelling, challenges remain, particularly in proving Adani’s direct involvement and obtaining live testimony from India. Additionally, extraditing Adani to the U.S. seems improbable, as India has not yet received an extradition request, and political complexities could hinder the process. Despite these hurdles, the case highlights the U.S. commitment to upholding integrity in its capital markets.