The Caisse de dépôt et placement du Québec is distancing itself from the controversial Indian conglomerate Adani, in the wake of a corruption scandal in which three of its former executives allegedly participated. The sweep concerns its subsidiary specializing in Indian highways.
Published at 5:00 a.m.
Without fanfare, Maple Infra InvIT, controlled by the nest egg of Quebecers, announced last month the resignation of the chairman of its board of directors, Romesh Sobti.
His problem: this former banker is also a director at Adani Green. However, this subsidiary of the Indian conglomerate is at the heart of American accusations of corruption which also target three former executives of the Caisse and its own solar energy subsidiary, Azure Power Global.
Together, Adani and Azure conspired to pay US$250 million in bribes to Indian officials and share the market, according to the US courts and watchdog. The accusations have not yet passed the test of the courts.
Disturbing links
Romesh Sobti left his role “due to increasing professional commitments and responsibilities,” according to Maple’s statement, which did not offer additional details.
Questioned by The Pressthe Fund did not hide the fact that its departure was not unrelated to the recent corruption scandal which has hit it in India.
In the context of his various professional involvements, and in light of the information recently made public by the authorities, both parties considered it desirable for him to leave the board of directors of Maple.
Isabelle Adjahi. vice-president of communications at the Caisse de dépôt et placement du Québec
François Dauphin, director of the Institute on the Governance of Private and Public Organizations (IGOPP), underlines that Romesh Sobti is resigning before the end of his mandate. “It is not a bad thing that there is a distance that is exercised with people linked to companies under investigation,” explains Mr. Dauphin.
Anti-corruption expert Patrice Poitevin agrees with the discomfort represented by Sobti’s involvement on Maple’s board of directors.
“One of the tasks of a board of directors is to avoid conflicts of interest, to protect the reputation and integrity of an organization,” says the former police officer of the Royal Gendarmerie of Canada. Even the appearance of a conflict of interest is a problem. He is more than just an appearance: he has a conflict of interest. »
A big deal
Mr. Sobti joined the board of directors of Adani Green in September 2021. The previous year, the Caisse had appointed him chairman of the board of directors of Maple.
Romesh Sobti was the Caisse’s trusted man to ensure the good governance of the organization, in office since the company’s beginnings in 2020.
It was therefore under the leadership of Mr. Sobti that the Caisse entered the highway market in India.
PHOTO TAKEN FROM MAPLE HIGHWAYS SITE
The Eastern Peripheral Expressway, a highway acquired by the Caisse de dépôt et placement du Québec in India
In 2022, he was in office when the Maple subsidiary got its hands on the Eastern Peripheral Expressway (EPE), a 135-kilometer private section which bypasses the capital New Delhi. Gold, The Press revealed in December that Maple paid almost twice as much as its closest rival offered to acquire the infrastructure, namely $1 billion.
A division of the Adani conglomerate was also eyeing the EPE. However, she offered less than half the price that Maple ultimately paid to acquire it. At the same time, Mr. Sobti was a director of another subsidiary of the Indian giant: Adani Green.
Nth chapter
In November, The Press revealed that three former Caisse executives had been accused in New York of having participated in a vast corruption system with Adani executives to obtain solar energy contracts.
The Fund claims to have fired the three employees involved in 2023, Cyril Cabanes, Saurabh Agarwal and Deepak Malhotra, as well as two CEOs of Azure that it had chosen and who were allegedly involved in the conspiracy.
The CEO of the vast Indian conglomerate, Gautam Adani, known to be very close to Indian Prime Minister Narendra Modi, is accused of having piloted the scheme. The businessman’s fortune is estimated at US60.5 billion according to the magazine Forbeswhich places him at 25e rank of the richest people on the planet.
PHOTO ANUSHREE FADNAVIS, REUTERS
Corruption charges brought against Gautam Adani in New York have sparked opposition protests across India.
Well before the American accusations, Adani and its founder had already been in turmoil for months, notably targeted by a series of journalistic investigations and by the short seller Hindenburg. In its reports, the firm raised numerous allegations, notably regarding accounting irregularities and stock market manipulation.
Last November, corruption accusations against Gautam Adani sparked opposition protests in India against the businessman’s ties to the government.
Learn more
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- 2016
- Year the Fund opened its office in New Delhi, India
source: Caisse de dépôt et placement du Québec
- 452 billion
- Net assets of Quebecers’ nest egg as of June 30, 2024
source: Caisse de dépôt et placement du Québec
