SEC Charges Adani Executives & Azure Power Director in Massive Bribery Scandal

The Securities and Exchange Commission (SEC) has dropped the hammer on three senior executives at Adani Green Energy Ltd. and Azure Power Global Ltd. for allegedly orchestrating a sprawling bribery scheme. The charges, which involve shady dealings to secure a lucrative solar energy project, are as much a cautionary tale as they are a stark reminder of the stakes in global business.

At the heart of the allegations are Gautam Adani, Chairman of Adani Green’s Board, his nephew Sagar Adani, Executive Director of the company, and Cyril Cabanes, a former director at Azure Power. The SEC accuses the trio of funneling hundreds of millions of dollars in bribes to Indian government officials to lock in deals that guaranteed sky-high energy prices for their companies. Meanwhile, they allegedly fed U.S. investors a polished but misleading narrative about their stellar compliance and anti-bribery policies.

Adani Green Energy wasn’t just raising solar panels; it was raising $750 million in a 2021 note offering, of which a significant $175 million came from U.S. investors. The SEC claims that while the executives assured investors of a robust anti-corruption program, they were, in reality, knee-deep in a bribery scheme.

On the Azure Power side of the equation, Cabanes allegedly facilitated the bribes both in the U.S. and abroad, playing a key role in the misconduct. This conduct not only violated the Foreign Corrupt Practices Act (FCPA) but also shattered trust in a company trading on the New York Stock Exchange.

Sanjay Wadhwa, Acting Director of the SEC’s Division of Enforcement, didn’t hold back. “As alleged, Gautam and Sagar Adani induced U.S. investors to buy Adani Green bonds through false claims about their anti-bribery compliance, while Cyril Cabanes actively participated in the bribery scheme. Actions like these strike at the heart of market integrity, and we will hold individuals accountable.”

The charges against the Adani executives include violations of federal securities laws, with penalties ranging from permanent injunctions to civil fines and bans on holding corporate leadership roles. Similarly, the SEC is pursuing stiff penalties against Cabanes for FCPA violations.

And it doesn’t stop there. The U.S. Attorney’s Office for the Eastern District of New York has unsealed parallel criminal charges against all three, amplifying the legal pressure they face.

A Compliance Lesson with Global Reach

For compliance professionals, this case is a wake-up call. It’s a stark reminder that even the most promising investments can harbor serious risks when companies don’t walk the talk on ethics and compliance. The allure of renewable energy’s green sheen doesn’t exempt it from needing a rock-solid foundation of transparency and accountability.

Beyond the legal drama, this scandal raises important questions for U.S. investors about the reliability of compliance assurances from foreign companies. It also puts a spotlight on the need for rigorous oversight—whether you're a regulator, a corporate board, or an investor looking to fund the next big thing.

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