IHC Maintains Confidence In Adani Group Despite US Indictment Of Gautam Adani

Last week, US prosecutors accused Adani, his nephew and executive director IHCof allegedly orchestrating a $265 million bribery scheme to secure Indian power supply contracts

Adani Group has dismissed the charges as "baseless" and vowed to pursue "all possible legal recourse."

Source : PTI

Abu Dhabi-based International Holding Co (IHC) has reiterated its confidence in Adani Group, stating that its investment outlook remains unchanged following the indictment of billionaire Gautam Adani by US authorities. "Our partnership with the Adani Group reflects our confidence in their contributions to the green energy and sustainability sectors," IHC said in a statement on Wednesday. The conglomerate noted that it continues to monitor developments and evaluate relevant information but sees no need to alter its investment stance at this time.

Last week, US prosecutors accused Adani, his nephew and executive director Sagar Adani, and Adani Green managing director Vneet S. Jaain of allegedly orchestrating a $265 million bribery scheme to secure Indian power supply contracts. Adani Group has dismissed the charges as "baseless" and vowed to pursue "all possible legal recourse."

In October 2022, IHC increased its stake in Adani Enterprises, the group's flagship company, to over 5 per cent, having reduced its investments in two other Adani firms. At the time, IHC described Adani Enterprises as being "uniquely poised to capitalise on India's robust growth journey."

The additional investment followed earlier allegations from short seller Hindenburg Research in January 2022, accusing the Adani Group of stock manipulation and high debt levels. Those claims were also denied by the conglomerate.

IHC and a subsidiary of Adani Group also partnered last year to launch a technology joint venture aimed at digitising the Indian economy using artificial intelligence and enterprise blockchain products.

Adani Green, the group company implicated in the US indictment, clarified in a statement on Wednesday that Gautam Adani faces potential civil monetary penalties for alleged securities law violations but has not been charged under the US Foreign Corrupt Practices Act.

The US Securities and Exchange Commission (SEC) has filed a civil complaint seeking penalties from the defendants, though the amount has not been specified. This civil action runs alongside federal criminal charges. Adani Green reaffirmed its commitment to defending the company and its leadership against the allegations.