No change in approach regarding investment in Adani Group: IHC on US indictment

The Uncut


New Delhi. Abu Dhabi’s International Holding Company (IHC) said that despite the indictment in the US against Adani Group’s founding chairman Gautam Adani, its view on investing in the group has not changed. “Our partnership with the Adani Group reflects our confidence in their contribution to the green energy and sustainability sectors,” IHC, one of the major foreign investors in the Adani Group, said in a statement. It says, “As with all of our investments, our team continues to evaluate relevant information and developments.” At this time our view on these investments remains the same.”

IHC has acquired renewable energy arm Adani Green Energy Ltd in April 2022. (AGEL) and had invested about US $ 500 million in power company Adani Transmission. He had invested one billion dollars in the group’s flagship company Adani Enterprises. Later, however, it sold its 1.26 per cent stake in AGEN and 1.41 per cent in ATL (now called Adani Energy Solutions Ltd) but increased its stake in Adani Enterprises Ltd to five per cent.

Earlier, the Adani Group had insisted that billionaire Gautam Adani and his nephew Sagar Adani have not been charged with violating the US Foreign Corrupt Practices Act (FCPA) in the alleged bribery case. Rather, he has been charged with securities fraud, which can carry monetary penalties.

AGEL is accused of paying bribes worth US$265 million to Indian officials to win the solar power sales contract, which could have provided the company with a profit of US$2 billion over a 20-year period. The company said the three AGEL executives have been charged only with conspiracy to commit securities fraud, conspiracy to commit wire fraud and securities fraud. Generally the penalties for such charges are less severe than for bribery.
Last week, Adani Group had rejected all the allegations and said that it will adopt all possible legal means to defend itself.

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