India's Adani says his group is committed to compliance after US bribery and fraud charges

NEW DELHI -- Indian tycoon Gautam Adani said his conglomerate is committed to “world-class regulatory compliance” after being indicted in the U.S. on fraud charges and an alleged bribery scheme worth millions of dollars, his first remarks since the accusations surfaced.

Adani, 62, is one of Asia’s richest men and perceived as close to Prime Minister Narendra Mo di. He was thrust into the spotlight on Nov. 20 when U.S. prosecutors in New York charged him and seven of his associates with securities fraud, conspiracy to commit securities fraud, and wire fraud, as well as duping investors by concealing that his company’s huge solar energy project on the subcontinent was being facilitated by bribes.

They were accused of allegedly paying or planning to pay about $265 million in bribes to government officials to help secure contracts and financing amounting to billions of dollars.

“This is not the first time we have faced such challenges. What I can tell you is that every attack makes us stronger. And every obstacle becomes a stepping stone for a more resilient Adani Group,” Adani said late Saturday at an awards ceremony in the northern Indian city of Jaipur.

The businessman said roadblocks his group faces are “the price of pioneering.”

“The more bold your dreams, the more the world will scrutinize you,” he said. “In today’s world negativity spreads faster than facts. And as we work through the legal process, I want to reconfirm our absolute commitment to world-class regulatory compliance.”

The Adani Group, in a statement last week, said the allegations by the U.S. Department of Justice and the U.S. Securities and Exchange Commission against directors of Adani Green were baseless.

Adani’s imprint across India’s economy runs deep. His group is the country’s largest operator of coal mines and largest infrastructure developer, operating several ports and airports, and employing tens of thousands of people. Despite his fossil fuel roots, Adani has ambitions to become the world’s largest player in renewable energy by 2030.

Analysts say a key factor in his meteoric rise over the years has been his knack for aligning his group’s priorities with those of the Modi government. His critics accuse him of crony capitalism and gaining preferential treatment from the state which has facilitated him winning governmental contracts. The group has repeatedly denied the accusation.

The controversy has already affected Adani’s interests overseas.

Kenya’s president on Nov. 21 canceled multimillion-dollar deals with the Adani Group for airport modernization and energy projects.

A Sri Lankan government spokesperson said earlier this week that it is reviewing projects to be implemented by the Adani Group in Sri Lanka. The group was set to invest over $440 million under a 20-year agreement to develop 484 megawatts of wind power in the northeastern regions of Sri Lanka and develop a terminal in the Colombo port.

Bangladesh’s interim government is also reviewing an agreement under which the Adani Group supplies electricity to Bangladesh from a power project in India.