Coming out in public for the first time after recent allegations and his indictment in the US, Adani group chairman Gautam Adani on Saturday said his conglomerate was committed to compliances and “every attack makes us stronger”.

IMAGE: Gautam Adani, chairman, Adani group, speaks at the 51st Gem & Jewellery Award, Jaipur, November 30, 2024. Photograph: ANI Photo

“Less than two week back, we faced a set of allegations from the US about compliance practices. This is not the first time we have faced such challenges. What I can tell you is that every attack makes us stronger,” he said addressing the 51st Gems and Jewellery Award in Jaipur.

On November 20, 2024, the United States department of justice and the US Securities and Exchange Commission (SEC) issued an indictment and a civil complaint in the New York district court against Gautam Adani, Sagar Adani and Vneet Jaain, key functionaries of Adani Green Energy Ltd (AGEL).

The charges relate to allegations of securities fraud, wire fraud and violation of the SEC guidelines that led to materially false and misleading statements in the bond offering documents of AGEL with respect to anti-bribery and anti-corruption policies.

The Adani group had issued a statement denying all allegations as baseless, and said it would seek legal recourse to defend itself.

Speaking at Saturday’s event, Adani said that despite a lot of vested reporting, no one from Adani’s side has been charged with any violation of the FCPA (Foreign Corrupt Practices Act) of the US or any conspiracy to obstruct justice.

“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,” he said, adding that the group was committed to regulatory compliances.

“As we work through the legal process, I want to re-confirm our absolute commitment to world class regulatory compliance,” he added.

Adani Green Energy Ltd, the renewable energy arm of the port-to-energy conglomerate, on November 21 scrapped a USD 600-million bond issue.

The 20-year green bond was over-subscribed three times, hours before the US prosecutors charged Gautam Adani and associates with participating in a scheme to pay over USD 250 million bribe to Indian officials in exchange for favourable terms for solar power contracts.

Following the indictment, Adani group companies’ stocks also tanked in the Mumbai trade. Ten listed firms of the group lost about USD 26 billion (Rs 2.19 lakh crore) in market value — more than double of what the conglomerate had lost when US short-seller Hindenburg brought out a damning report in January 2023.

However, since Wednesday, stocks of all the group firms have recovered. Shares of nine of the 11 listed Adani Group firms ended higher on Friday, with Adani Green Energy surging almost 22 per cent and Adani Energy climbing nearly 16 per cent.

“Over the years, I have come to accept that the roadblocks we face are the price of pioneering. The bolder your dreams, 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 said.

Adani said that the group had successes but the challenges have been 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,” he said.

Last year, the conglomerate had scrapped a Rs 20,000 crore Follow-on Public Offer (FPO) at its flagship firm Adani Enterprises Ltd after US short-seller Hindenburg Research’s report in January, which alleged the group of stock manipulation and accounting fraud.

Adani had rejected all allegations and threatened to sue Hindenburg for its “reckless” attempt to sabotage the mega share sale at Adani Enterprises.

But the allegation led to a free-fall of the group firms’ stocks, which at the lowest point saw USD 150 billion in market value being eroded.

Talking about the Hindenburg report, he said, “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.”

Adani said that after successfully raising Rs 20,000 crore from India’s largest-ever FPO, the company made the extraordinary decision to return the proceeds.

“We then further demonstrated our resilience by raising capital from several international sources and proactively reducing our debt-to-EBITDA ratio to below 2.5 times, an unmatched metric in the global infrastructure space,” he said.

“Our all-time record financial results in the same year showcased our commitment to operational excellence. Not a single Indian or foreign credit rating agency downgraded us. Finally, the Supreme Court of India’s affirmation of our actions validated our approach,” he said.

He further said that in 2010, when the group was investing in a coal mine in Australia, its objective was to make India energy secure and replace every two tonnes of poor-quality Indian coal with one tonne of high-quality coal from Australia.

However, he said, the resistance from NGOs was huge and lasted almost a decade.

“It was so intense that we ended up funding the entire project of 10 billion dollars 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,” he said.

Adani also shared his journey of becoming an entrepreneur and highlighted its dominance in various sectors.

He also advised businessmen to embrace technology and sustainability for progress, empower and uplift the skilled workforce and nurture the younger generation and equip them to balance tradition with transformation, culture with innovation and legacy with sustainability.