The "very, very big and bold" clarification by Adani Green Energy Ltd. over the charges by the US Department of Justice and the Securities and Exchange Commission will lead to resolution and recovery for the group stocks and investors, said Abizer Diwanji, founder of NeoStrat Advisors.
He emphasised that such a strong, unambiguous declaration was important, as it instilled confidence in the market. “This positive statement in itself gave a lot of confidence to people at large, that there is backing to it.”
Diwanji also pointed out that there were several loopholes in the legal proceedings, as highlighted by experts.
Nonetheless, he expressed optimism, saying, "The positivity is... yes, with the statement coming through, we now believe there is a path to recovery."
Speaking on the significance of the statement, Diwanji explained that for the first time, Adani Green Energy had issued a clear, unequivocal statement affirming that none of its officials were involved in any wrongdoing.
"For the first time a very clear statement came out of the company saying that our officials are not involved and that was a very very big and bold statement, presumably backing off or kind of challenging the authorities," Diwanji noted.
Diwanji also pointed out the larger implications of the situation, not just from a market perspective but also for the Adani Group's counterparties, who might have been impacted by the uncertainty surrounding the legal charges.
"The other important thing is the implications... not only from the market but from counterparties... the other people doing business with them, etc., the implications are so large so it is so easy for someone to say 'Oh, I levy a charge but the implication of levying those charges are supply of capital, are partnership, are raising of finances in the international market.' All of this has a contingent effect," he said.
The clarification from Adani Green Energy Ltd. addressed the allegations of violations of the US Foreign Corrupt Practices Act. The company clarified that Chairman Gautam Adani, Executive Director Sagar Adani, and Chief Executive Officer Vneet Jaain have not been charged with any FCPA violations or conspiracy to obstruct justice.
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