Adani Group Dismisses Reports of Bribery for Projects; JP Morgan Deems Allegations ‘Highly Unlikely’
Previously, it was disclosed that prosecutors from the US Attorney’s Office and the Department of Justice (DoJ) are examining a subsidiary of the Adani Group.
Bloomberg reported that the Adani Group allegedly bribed officials to secure clearance for energy projects, prompting the conglomerate to refute the news as “false”. Now, global brokerage firm JP Morgan has commented on the matter, stating that it maintains its stance on the Adani Group as the likelihood of corruption is deemed “highly unlikely”.
Love Sharma of JP Morgan, as reported by Economic Times, expressed that due to the extensive transparency observed in numerous renewable energy tenders initiated in India, the likelihood of substantial corruption and bribery appears highly improbable to them. Criticizing the absence of specific details in the report, the brokerage asserted that an investigation alone cannot result in prosecution, thus limiting its potential financial or fundamental impact on the Adani Group. Consequently, JP Morgan maintained its recommendation without alteration.
JP Morgan stated that under the provisions of the US Foreign Corrupt Practices Act (FCPA), violations of anti-bribery measures may result in a fine of up to US$2 million or twice the financial benefit, while individuals could face imprisonment of up to 5 years along with a fine of $250,000 or twice the financial benefit.
According to Love Sharma of JP Morgan, “Our preference within the Adani Group remains Adani Ports, where we maintain an overweight position across the spectrum. It’s noteworthy that as of November 2023, Adani Ports had secured approximately US$553 million in financing from the US government’s development financial arm, DFC, for its Colombo Port project. While this doesn’t necessarily absolve all concerns, it does suggest a certain degree of scrutiny being exercised at the Adani Ports level prior to making the investment.”
What report said on Adani Group?
The report alleged that prosecutors from the US Attorney’s Office and the Department of Justice (DoJ) are examining a subsidiary of the Adani Group and Azure Power Global for potential bribery investigations. It further suggested that prosecutors may also be scrutinizing the actions of Gautam Adani.
What Adani Group said on the report?
The Adani Group refuted the allegations of investigations and stated that it has not been served any notice by the US Department of Justice.
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