HighlightsWhy was Gautam Adani accused of alleged bribery of $250 million in the US?A case registered for alleged violation under the Foreign Corrupt Practices Act (FCPA)Many big companies of the world have been implicated in this and have been fined heavilyFederal Prosecutors in New York On November 21, Adani Group Chairman Gautam S. Charged Adani, his nephew Sagar Adani and six others in multiple cases of fraud. The charges relate to an alleged multimillion-dollar scheme to bribe Indian officials in exchange for favorable terms on solar energy contracts, which was expected to yield profits of more than $2 billion. This case has raised a question that this project of Adani Group was related to India and the allegations were also related to India, so how was a case registered in America. The case went on and the court issued an arrest warrant against him. According to a press release issued by the U.S. Attorney's Office, Eastern District of New York, “The indictment charges a scheme to bribe Indian government officials in excess of $250 million, lie to investors and banks to raise billions of dollars, and obstruct justice.” Is charged." A new tender issued in 2019 by the state-owned Solar Energy Corporation of India (SECI) is the focus of an indictment in a US court, accusing the Adani Group chairman and his associates of paying more than $250 million in bribes to Indian government officials Is. This solar tender related to manufacturing was finally awarded to Adani Green Energy and Azure Power. According to the indictment, the $6 billion investment was expected to generate more than $2 billion in after-tax profits over 20 years. However, the project faced an unexpected setback when the state could not sign power supply agreements with power distribution companies due to its “high energy prices”. Question – Why did this matter reach the American court? – According to American laws, if American citizens and companies are investing anywhere in the world and their economic interests are hurt or there are any irregularities related to it, then it comes under the jurisdiction of the American courts. . The case was sparked by a complaint by a company called Trini Energy to US authorities that Adani Green officials allegedly paid bribes to government officials in several states, including Odisha, Andhra Pradesh, Tamil Nadu, Chhattisgarh and Jammu and Kashmir, to improve their electricity distribution. Pressure can be put on companies (DISCOMs) to persuade them to buy solar energy above the market rate. So this matter became a matter related to the interests of the American courts and the American people. Because this corruption took place and Adani Green failed to give this information to its investors in America. Question – What allegations have been made against Adani Green in the US court? – If the US prosecutors talked about the company being involved in corruption, they also alleged that Gautam Adani was trying to speed up the work of purchasing power between SECI and the state's DISCOMs. Personally met an unnamed “high-ranking government official of Andhra Pradesh” in August 2021, during which approximately ₹1,750 crore (85% of the alleged bribe) was offered to the official Went. Question – Mainly, under which law Adani and his associates were sued in the US court? – In the indictment, Adani and his associates were booked for alleged violation of the Foreign Corrupt Practices Act (FCPA), in which the case of obtaining energy contracts was made. He has been accused of conspiring to bribe Indian officials. In the US, this law was implemented in 1977, but it has been enforced more strictly in recent decades. Question – Which big companies of the world have come under its ambit? – Major companies including Germany's Siemens, Brazil's state-owned Petrobras and a subsidiary of oil services giant Halliburton have been fined heavily for violating this law. . However, President-elect Donald Trump reportedly wanted to eliminate this law in his first term because he considered it “unfair” to American companies. Prosecutors allege that the defendants discreetly solicited bribes and offers to Indian officials using messaging apps, phones and PowerPoint presentations, often using “code names” in their communications. Question – What will happen next in this case? – As the case progresses, the concerned judge will formally inform the defendants about the charges. Then we will decide whether to grant bail or not. The defendants will have to enter a plea whether they consider themselves guilty or innocent. If they plead not guilty, the case will proceed to a jury trial. However, there is also a possibility of a deal between the Indian industrialist and the US authorities, after which the billionaire may seek to dismiss the indictment. Question – What is the US Foreign Corrupt Practices Act (FCPA), what does it contain? – The Foreign Corrupt Practices Act (FCPA) is a United States federal law enacted in 1977 that aims to prevent corruption and promote ethical business practices. Is. It primarily targets bribery of foreign officials and enforces corporate accountability. The FCPA has two main provisions:1. The anti-bribery provision prohibits US individuals, companies, and certain foreign entities operating in the US from giving valuable items and bribes to foreign government officials to obtain or retain business. This applies to public companies, private businesses, their employees and third-party intermediaries.2. Also applicable to companies listed on US stock exchanges: Companies listed on US stock exchanges are required to maintain accurate financial records and implement internal accounting controls to prevent and detect corruption. The law applies to U.S. citizens, residents, and foreign entities or people doing business with the U.S. and with companies in the U.S. It has broad extraterritorial reach, meaning it applies to all U.S. citizens. May also apply to actions outside the U.S., if they involve the U.S. Companies or financial systems are involved. Question – What are the penalties if convicted? – Serious criminal and civil penalties, including fines (up to millions of dollars) for companies and prison time for individuals. Tags: Adani Group, Gautam AdaniFIRST PUBLISHED : November 22, 2024, 15:23 IST
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