Indian government is not a part of U.S. probe into Adani Group: Ministry of External Affairs

It is a legal matter involving private firms, individuals and U.S. Justice Dept., says MEA spokesperson Randhir Jaiswal, adding that Embassy has not been contacted in case

India was not informed by the United States government about its investigation into the Adani group, said that Ministry of External Affairs on Friday (November 29, 2024), who confirmed that the Indian Embassy in Washington has thus far not received any legal paperwork on the indictments against top Adani officials accused of a conspiracy to bribe Indian officials. Calling it a legal matter between “private firms and individuals, and the US Department of Justice,” the MEA said it was not involved directly, and that it had not been asked for help in the matter by the US, nor had the government sought evidence of the bribery allegations in order to pursue investigations in India.

The statement from the MEA came even as both houses of parliament were adjourned for a fourth day, with the government refusing to make a statement, and the Chairperson of the Rajya Sabha rejecting adjournment motions for a debate on the issue. 

“This is a legal matter involving private firms and individuals and the U.S. Department of Justice,” said the MEA spokesperson Randhir Jaiswal, responding to a question from The Hindu. “We are not part of it in any manner at this point of time.” 

To another question on whether the government had been served with the arrest warrant issued by a court in New York after a grand jury indicted Adani Chairman Gautam Adani and 7 other officials of the company variously on a number of counts ranging from bribery, conspiracy and securities fraud on November 21, the MEA spokesperson said the Embassy in Washington had not been contacted about the case.

“Obviously there are established procedures and legal avenues in such cases which we believe would be followed. The Government of India was not informed in advance on the issue,” he said, adding, “We have not had any conversation on this particular matter with the US government”.

The U.S. Department of Justice is now expected to initiate proceedings for a trial, although it is unclear how far a change in administration in the US in January will affect the process, and whether there will be other avenues such as allowing the Adani group to pay a fine in lieu of further action. Although the alleged bribery of Indian officials took place in India, US agencies have invoked a Bonds issue in the US and the Foreign Corrupt Practices Act to justify its case against the group.  India and the US signed a Treaty on Mutual Legal Assistance in Criminal Matters in 2001, which came into force in 2005, which governs any requests for assistance in cases against citizens in each other’s jurisdictions. 

“Any request by a foreign government for service of summons/arrest warrant is part of mutual legal assistance. Such requests are examined on merits. We have not received any request on this case from the US side,” Mr. Jaiswal clarified.

Responding to the US indictments last week, the Adani group had denied any wrongdoing, and said it would pursue legal recourse. It also disclosed that it has thus far suffered losses of US $55 billion since the indictment was made public in terms of market capitalisation across 11 listed companies.

In a statement to news agency AFP, the group said it had already faced “significant repercussions” , including “international project cancellations, financial market impact and sudden examination from strategic partners, investors and the public”, with a specific reference to Kenya where the government cancelled its contracts for infrastructure and energy. Others like Bangladesh and Sri Lanka have announced reviews of Adani contracts.

Published - November 29, 2024 04:38 pm IST