US SEC Links Adani and Azure Power Cases in Major Move

Aakhir Tak – In Shorts

1. The US SEC has sought to consolidate cases involving Gautam Adani and Azure Power’s ex-director Cyril Cabanes.
2. The SEC claims both cases are interconnected by shared evidence and transactions.
3. Cyril Cabanes is charged with violating the US Foreign Corrupt Practices Act (FCPA).
4. The cases have triggered global scrutiny and economic fallout for the Adani Group.
5. SEC has urged the court to hear both cases together for clarity.

Aakhir Tak – In Depth

US SEC’s Significant Move

The US Securities and Exchange Commission (SEC) has filed an application in a New York court, requesting the consolidation of cases against Indian industrialist Gautam Adani and Azure Power’s former director Cyril Cabanes. The SEC argues that the cases are linked through shared evidence and overlapping transactions.

Charges Against Cyril Cabanes

Cabanes faces allegations of violating the US Foreign Corrupt Practices Act (FCPA), a key factor in SEC’s move to combine the cases. The SEC claims his actions included illegal foreign transactions, raising questions about his ties to Adani.

Implications for Gautam Adani

Although Gautam Adani and his nephew Sagar Adani are not directly charged with FCPA violations, the SEC’s request to relate the cases could impact their legal standing. The SEC believes hearing both cases together will provide a comprehensive understanding of the issues.

Economic and Political Repercussions

The Adani Group experienced a significant economic blow, losing nearly USD 34 billion in market value initially, though some recovery has been seen.

Global Responses

• India: Andhra Pradesh is reviewing its power project contracts with the Adani Group.
• Kenya: Two infrastructure projects have been canceled.
• France: TotalEnergies has frozen new financial contributions to Adani-linked ventures.

International Investigation Intensifies

The US International Development Finance Corporation (DFC) is reassessing its USD 550 million funding proposal for an Adani Group-owned port project in Sri Lanka. The controversy has attracted global attention, further complicating Adani’s international ventures.

Aakhir Tak – Key Takeaways to Remember

1. The SEC has linked Adani and Cabanes’ cases, citing shared evidence.
2. Cyril Cabanes is charged with FCPA violations, intensifying scrutiny.
3. The Adani Group faced substantial financial and reputational impacts.
4. International responses include contract terminations and project reviews.
5. The SEC’s move highlights increased global oversight on Adani’s projects.

Aakhir Tak Editor-in-Chief

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