US firms operating in India paid hefty fines for bribing Indian officials: Report
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Apart from Adani Green Energy Ltd, which has been under scrutiny over bribery of Indian officials to secure power contracts, several other major international companies with operations in India, such as Moog Inc., Oracle Corporation, and Albemarle Corporation, are also facing bribery charges and have reportedly paid hefty fines to avoid prosecution, The Wire reported, citing a report published in The Pioneer.
In one of the most recent cases, the US Securities and Exchange Commission (SEC) revealed that Moog Inc., a global manufacturer of motion control systems, paid over half a million dollars in bribes to officials at Hindustan Aeronautics Limited (HAL) between 2020 and 2022.
The SEC found that employees of Moog’s subsidiary, Moog Motion Controls Private Limited, used various methods, including third-party agents, to funnel illicit payments, which were recorded as legitimate business expenses. The company agreed to pay a civil penalty of $1.1 million and disgorgement and prejudgment interest totalling nearly $600,000.
Similarly, Oracle Corporation was found to have paid more than $6.8 million in bribes related to business deals with Indian Railways, the UAE, and Turkey. The company settled its case by agreeing to pay a penalty of $23 million to the US Treasury.
Albemarle Corporation, a major chemical supplier, was also caught in a bribery scheme involving Indian Oil Corporation and businesses in Indonesia and Vietnam. The SEC’s investigation revealed that Albemarle paid over $63 million in bribes between 2009 and 2011. The company ultimately settled the case by paying a fine of over $198 million.
Amidst these revelations, Indian business magnate Gautam Adani and his companies have come under scrutiny. The Adani Group is facing accusations related to a $265 million bribery scheme involving Adani Green Energy Ltd and Azure Power Global Ltd.
The US indictment alleges that the Adani Group, including Gautam Adani and other executives, bribed Indian officials to secure solar power contracts. The scandal became particularly notable in 2021 when the Adani Group was raising funds from US-based investors.
In India, the political fallout has been intense, with opposition parties calling for a thorough investigation into the allegations. While the Adani Group has dismissed the charges as baseless, the controversy has raised concerns about corporate compliance practices in the country.