On November 20, 2024, the United States Securities and Exchange Commission filed a complaint in the United States District Court for the Eastern District of New York demanding jury trial against Cyril Sebastien Dominique Cabanes. The complaint alleges that Cabanes, while serving as a director of Azure Power, participated in a bribery scheme involving payments exceeding USD 250 million to Indian state officials. The alleged scheme aimed to secure contracts necessary for large-scale renewable energy projects. The complaint also claims that Cabanes violated the anti-bribery provisions of the United States Foreign Corrupt Practices Act.
Cyril Sebastien Dominique Cabanes, a French national residing in Singapore, was a director of Azure Power and represented the interests of its largest shareholder, the Canadian pension fund Caisse de dépôt et placement du Québec.
In December 2019, the Solar Energy Corporation of India awarded contracts for the Manufacturing Linked Projects to Azure Power and Adani Green Energy Limited. These projects required additional agreements with Indian state governments and power distribution companies. However, state officials were unwilling to accept the proposed terms, creating a risk that the projects would not proceed.
From 2021 to 2023, executives at Azure Power and Adani Green Energy Limited allegedly devised a bribery scheme to overcome this resistance. Payments totaling approximately USD 250 million were either promised or made to Indian state officials. According to the complaint, Cabanes became actively involved in the scheme by May 2022.
It is alleged that Cabanes used electronic communications, including WhatsApp messages, to coordinate payments and discuss the bribery scheme with other executives. These communications were sent through United States interstate commerce. Additionally, Cabanes allegedly directed Azure Power executives to conceal the bribery scheme from the company’s board of directors and legal counsel, further exacerbating the violations.
By December 2022, the bribery scheme reportedly succeeded in securing critical agreements, allowing Azure Power and Adani Green Energy Limited to proceed with the Manufacturing Linked Projects. These projects were expected to generate billions of United States dollars in revenue for the companies.
The United States Securities and Exchange Commission prays the United States District Court for the Eastern District of New York for the relief in its complaint are imposition of monetary penalties on Cyril Sebastien Dominique Cabanes under United States Securities Exchange Act Section 21(d)(3); along with permanent prohibition on Cyril Sebastien Dominique Cabanes from serving as an officer or director of any company registered under United States Securities Exchange Act Section 12(b) or required to file reports under United States Securities Exchange Act Section 15(d); and disgorgement, the defendant must relinquish any financial gains obtained through the alleged violations, along with prejudgment interest. The court may grant any other relief it deems just and appropriate.
The complaint alleges that Cyril Sebastien Dominique Cabanes violated the anti-bribery provisions of the United States Foreign Corrupt Practices Act, specifically Section 30A of the United States Securities Exchange Act of 1934. This section prohibits United States-related companies and individuals from bribing foreign officials to gain business advantages.
The United States District Court for the Eastern District of New York has jurisdiction over this case under United States Securities Exchange Act Sections 21(d), 21(e), and 27. The complaint states that the alleged bribery involved the use of United States interstate commerce, including electronic communications transmitted through this district. Furthermore, the payments and communications facilitated violations of United States federal laws governing securities and anti-corruption practices.
(Source: https://www.sec.gov/newsroom/press-releases/2024-181, https://www.sec.gov/files/litigation/complaints/2024/comp-pr2024-181-1.pdf)
