(Bloomberg) — Indian billionaire Gautam Adani and his aides have not been charged under the US Foreign Corrupt Practices Act, an Adani Group entity said, seeking to clarify some media reports claiming so.
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The Department of Justice’s indictment does not mention Gautam Adani, Sagar Adani or Vneet Jaain in any count related to conspiracy to violate the FCPA, Adani Green Energy Ltd. said in a filing to the stock exchange Wednesday.
The company noted in a statement that Gautam, Sagar and Vneet have been charged with securities fraud conspiracy, wire fraud conspiracy and securities fraud, and not violating the US foreign corruption law.
However, the charges Adani and his aides face actually can carry more severe penalties — up to 20 years prison each — than conspiracy to violate FCPA penalties of up to 5 years in prison.
Gautam and Sagar also face a civil complaint over alleged violation of sections of the Securities Act, and aiding and abetting Adani Green to violate the Act, the company said.
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Adani Group stocks surged Wednesday after the statement. Adani Enterprises Ltd. gained 11.5%, the most since Dec. 5, and Adani Green jumped 10%. Adani Energy Solutions Ltd. and Adani Total Gas Ltd. rallied 10% and 20%, respectively.
The group previously denied all allegations, and said it would seek legal recourse to defend itself.
The FCPA makes it a crime for a company or person with US links — such as a public listing, American investors or a joint venture — to pay or offer something of value to another government’s officials for favorable treatment. While the Adani Group doesn’t trade in the US, it does have American investors.
Federal prosecutors alleged last week that Adani, one of the world’s richest people, and other defendants promised to pay more than $250 million in bribes to Indian government officials to win solar energy contracts, and concealed the plan as they sought to raise money from US investors.
“Investors will find this clarification from the group helpful and it is working favorably for the stocks,” said Deven Choksey, managing director at DRChoksey FinServ Pvt. “Professional investors, however, would like to see lot of transparency from the group on every front going ahead.”