Committed to compliances, every attack makes us stronger: Gautam Adani
Jaipur (PTI): 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".
"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 here.
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.
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 Hindernburg 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.
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Azerbaijani airliner with 67 people onboard crashes in Kazakhstan leaving 32 survivors
Moscow, Dec 25: An Azerbaijani airliner with 67 people onboard crashed Wednesday in the Kazakhstani city of Aktau, leaving at least 32 survivors, according to officials. More than 30 people are likely dead.
Kazakhstan's Emergency Ministry said in a Telegram statement that those on board included five crew. At least 29 have been hospitalized, the ministry told Russia's state news agency RIA Novosti.
Russian news agency Interfax quoted medical workers as saying that four bodies have been recovered and emergency workers at the scene as saying that both pilots, according to a preliminary assessment, died in the crash.
The Embraer 190 aircraft made an emergency landing 3 km from the city, Azerbaijan Airlines said earlier.
Kazakhstan's Emergency Ministry initially said 25 people survived the crash, later revising that number to 27, 28, and then 29 as the search and rescue operation continued at the site of the crash, bringing the supposed death toll down.
Prosecutor General's Office in Azerbaijan later reported that at least 32 people survived the crash, adding that the number wasn't final.
The number of survivors could mean that over 30 people may be dead.
The plane was originally scheduled to travel from the Azerbaijani capital of Baku to the Russian city of Grozny in the North Caucasus. According to Azerbaijan Airlines, 37 passengers were Azerbaijani citizens. There were also 16 Russian nationals, six Kazakhstani and three Kyrgyzstani citizens, it said.
RIA Novosti quoted Russia's civil aviation authority, Rosaviatsia, as saying that preliminary information showed that the pilot had chosen to divert to Aktau after a bird strike on the aircraft led to “an emergency situation on board”.
Mobile phone footage circulating online appeared to show the aircraft making a steep descent before smashing into the ground in a fireball. Other footage showed part of its fuselage ripped away from the wings and the rest of the aircraft, lying upside in the grass. The footage corresponded to the plane's colors and its registration number.
Some of the videos posted on social media showed survivors dragging fellow passengers away from the wreckage of the plane.
Flight-tracking data from FlightRadar24.com showed the aircraft making what appeared to be a figure-right once nearing the airport in Aktau, its altitude moving up and down substantially over the last minutes of the flight before impacting the ground.
FlightRadar24 separately said in an online post that the aircraft had faced “strong GPS jamming” which “made the aircraft transmit bad ADS-B data”, referring to the information that allows flight-tracking websites to follow planes in flight. Russia has been blamed in the past for jamming GPS transmissions in the wider region.
Embraer did not immediately respond to a request for comment early Wednesday morning. In a statement, Azerbaijan Airlines said it would keep members of the public updated and changed its social media banners to solid black.
Azerbaijan's state news agency, Azertac, said that an official delegation consisting of Azerbaijan's emergency situations minister, the country's deputy general prosecutor, and the vice president of Azerbaijan Airlines had been dispatched to Aktau to conduct an “on-site investigation”.
Azerbaijani President Ilham Aliyev, who had been traveling to St Petersburg, returned to Azerbaijan on hearing news of the crash, the president's press service said. Aliyev was due to attend an informal meeting of leaders of Commonwealth of Independent States, a bloc of former Soviet countries founded after the collapse of the Soviet Union.
Aliyev expressed his condolences to the families of the victims in a statement on social media. “It is with deep sadness that I express my condolences to the families of the victims and wish a speedy recovery to those injured,” he wrote.
Russian President Vladimir Putin spoke to Aliyev on the phone and expressed his condolences, Kremlin spokesman Dmitry Peskov told reporters.
Both Kazakhstani and Azerbaijani authorities were investigating the crash. Embraer told The Associated Press in a statement that the company is “ready to assist all relevant authorities.”
Azerbaijan Airlines passenger plane flying from Baku to Grozny crashed in Aktau, Kazakhstan. pic.twitter.com/EnicqHcTGM
— Clash Report (@clashreport) December 25, 2024
