How International Media Misconstrued US DoJ Allegations Against Adani Group
While Bloomberg reported factually on the matter, Reuters report said that Adani board members had been named by US DoJ and summoned by the US SEC, which was completely speculative.
There has been wide speculation against the Adani Group since the news of US allegations broke out last Thursday. A lot of it has been led by international media houses that have been biased and reported half truths. As a result, the conglomerate's market cap took a beating as the share prices of its 11 listed stocks fell sharply.
However, a statement by Adani Green clarifying the situation turned the tide in Wednesday's trade with all stocks closing in the green with two — Adani Green and Adani Energy Solutions — hitting upper circuit after shooting up 10%.
Let us take a few examples of the misconstrued narrative set by some of the international media houses.
What Has Been Reported?
A Reuters report said that Gautam Adani, the founder of the Adani Group, his nephew Sagar Adani, Adani Green Energy Ltd. Executive Director and other board members had been named in the indictment by the United States Department of Justice and that the summons are also issued by the US market regulator SEC, which was completely speculative.
Moreover, an article by the wire agency claimed that the Indian business as a whole 'may learn wrong lesson' from the self-grown businessman, which was a highly biased opinion.
Similarly, Washington Post and CNN ran headlines saying that Gautam Adani had been indicted in New York in an alleged bribery scam.
It is noteworthy here that some media houses of repute like Bloomberg and Financial Times have stayed factual and reported with nuance. Bloomberg made a distinction in their reportage and has not said in their reporting that there are Foreign Corrupt Practices Act or FCPA charges on Gautam Adani, Sagar Adani and other board members of the group.
What Are The Facts?
In a statement explaining the action by US DoJ, Adani Green released a statement on Wednesday and clarified that the Adani Group founder Gautam Adani, Sagar Adani, and Managing Director and Chief Executive Officer Vneet Jaain have not been named in the bribery charges in the indictment filed by the US Department of Justice.
Explaining the legality of the matter, senior lawyer and former Rajya Sabha member, Mahesh Jethmalani, described the accusations as baseless and politically motivated.
Former Indian Attorney-General Mukul Rohatgi questioned the indictment itself saying that it is silent on key aspects. "My assessment is there are five charges and it is important to note that the count 1 and count 5 are more important. But in neither of them is Adani or his nephew charged." Both the counts include a foreign company among other individuals and not Adani or Vneet Jaain, he said.
