Adani Group Chairman Gautam Adani addresses the gathering during the ‘51st Gem and Jewellery Awards (IGJA)’, in Jaipur, Saturday, Nov. 30, 2024.
Credit: PTI Photo
Ahmedabad: Facing charges of bribery and securities fraud by US authorities, Adani Group chairman Gautam Adani on Saturday reiterated his company's stand that "no one from the Adani side has been charged with any violation of the FCPA (Foreign Corrupt Practices Act) or any conspiracy to obstruct justice."
"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. The fact is that despite a lot of the vested reporting, no one from the Adani side has been charged with any violation of the FCPA or any conspiracy to obstruct justice. Yet, in today’s world, negativity spreads faster than facts — and as we work through the legal process, I want to re-confirm our absolute commitment to world class regulatory compliance," Adani said.
He was addressing a gathering organised by Gem and Jewellery Export Promotion Council (GJEPC) on the occasion of 51st Gem & Jewellery Awards.
On November 20, a five-count criminal indictment was unsealed in the federal court in Brooklyn, charging Gautam Adani, his nephew Sagar and Vneet Jaain, senior executive, "with conspiracies to commit securities and wire fraud and substantive securities fraud for their roles in a multi-billion-dollar scheme to obtain funds from US investors and global financial institutions on the basis of false and misleading statements."
In his speech, the 62-year-old chairman of Adani Group also recounted the Hindenburg Research report earlier in January on the Adani Group alleging stock manipulation among other charges. He said, "We faced a short-selling attack initiated from abroad. This was not a typical financial strike; it was a double hit — targeting our financial stability and pulling us into a political controversy. All of this was further amplified by certain media with vested interests. But even in the face of such adversity, our commitment to our principles remained strong."
He said that after raising Rs 20,000 crore from India’s largest-ever FPO, the company decided to return them. "We then further demonstrated our resilience by raising capital from several international sources and proactively reducing our Debt to EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) ratio to below 2.5 times, an unmatched metric in the global infrastructure space." He also added that "no Indian or foreign credit rating agency downgraded" the company. "Finally the Supreme Court of India’s affirmation of our actions validated our approach," he said.
The industrialist also mentioned large-scale opposition to the company's investment in coal mines in Australia by the NGOs. "...the resistance from NGOs was huge and lasted almost a decade. In fact, it was so intense that we ended up funding the entire project of $10 billion with our own equity. While we now have a world-class operating mine in Australia and it could be seen as a great sign of our resilience, the fact is that 100 per cent equity funding took away over $30 billion of debt financing from our green energy projects."
In his speech, Adani recalled his journey from the beginning and said, "Looking back, while we have had our successes, our challenges have been even bigger. However, these challenges have not broken us. Instead, they have defined us. They have made us tougher and give us the unshakeable belief that after every fall, we will rise again, stronger, and more resilient than before."
Narrating his story right from a diamond trader in Mumbai and creating a "global trading house", Adani said, "Over the years, I have come to accept that the roadblocks we face are the price of pioneering. The more bold your dreams are, the more the world will scrutinise you. But it is precisely in that scrutiny that you must find the courage to rise, to challenge the status quo, and to build a path where none exists.
He also recalled how "opportunities show up for those that seek". He said that back in 1995 "a transformative opportunity emerged when the BJP-led Gujarat government announced its port-led industrial development plan under a Public-Private- Partnership mode. To summarise a long story, we quickly moved to establish Mundra Port. This transition, about 30 years back, was the start of our journey into the domain of infrastructure."