SEOUL, November 25 (AJP) - The U.S. Securities and Exchange Commission (SEC) has issued a summons to India's second-richest man Gautam Adani on charges of securities fraud and bribery.
According to news reports on Sunday, the SEC sent the summons to Adani's home in India, seeking clarification on bribery allegations against him. Along with Adani, his nephew Sagar Adani, an executive at Adani Green Energy, a renewable energy company, has also been included in the summons.
Earlier, the U.S. Eastern District Court of New York filed charges against Adani and his nephew, along with six other individuals, on charges of securities fraud and bribery. The group is accused of falsifying financial statements to secure billions of dollars from global financial institutions, including U.S. investors, and of paying over $250 million in bribes to Indian officials in exchange for favorable treatment in large solar energy development projects.
Following the charges, the stock prices of 10 Adani Group affiliates plummeted on the Indian stock market, receiving a significant blow. The group has denied all allegations and plans to take legal action.
U.S. federal law allows prosecutors to investigate foreign corruption cases if they involve U.S. investors or markets.
Founded in 1988 by Gautam Adani, the Adani Group has rapidly grown to become India's largest logistics and energy conglomerate within just 30 years. The conglomerate currently operates infrastructure businesses such as ports and airports, along with ventures in resource development, including coal, gas, and power generation.
However, allegations of close ties between Adani and Indian Prime Minister Narendra Modi have been raised repeatedly, particularly by opposition parties in India.
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