The U.S. International Development Finance Corporation (DFC) announced on Sunday that it is reviewing the potential implications of bribery allegations against Gautam Adani, founder of the Adani Group, on its prior commitment to lend over $550 million for a Sri Lankan port development project partially backed by the group.
Last November, the DFC agreed to provide $553 million in financing for a port terminal project in Colombo. However, federal prosecutors in New York recently indicted Adani and seven others on charges of paying approximately $265 million in bribes to Indian government officials to secure contracts projected to generate $2 billion in profits over 20 years. The allegations also involve the development of India’s largest solar power project.
In a statement, a DFC official said, “The agency is aware of the recent allegations related to Adani and is actively assessing the ramifications in light of the Department of Justice’s announcement. We remain committed to ensuring that our projects and partners adhere to the highest standards of integrity and compliance.” The DFC also confirmed that no funds had been disbursed under the loan agreement.
The news was first reported by Bloomberg. The Adani Group did not respond to requests for comment on Sunday.
In its defense, the Adani Group has described the allegations from the U.S. Department of Justice and a parallel civil case by the U.S. Securities and Exchange Commission as “baseless and denied.” The group stated it would pursue “all possible legal recourse” to challenge the accusations.