Billionaire Gautam Adani’s lawyer addressed a US court on January 23 in an SEC bribery and securities fraud case. Filed in November 2024 against Adani and nephew Sagar, it marks the group’s first legal response amid looming direct summons.
Billionaire Gautam Adani’s lawyer presented his first arguments before a US court on January 23 in a bribery and securities fraud case filed by the US Securities and Exchange Commission (SEC).
In November 2024, the SEC filed a case against Indian billionaire Gautam Adani and his nephew Sagar Adani. Fourteen months later, this marks the first active legal move from the Adani Group.
The case comes at a time when the US Securities and Exchange Commission is preparing to issue direct summons to Gautam Adani and Sagar Adani.
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Factual Backgrounds
The US Securities and Exchange Commission has brought charges against Gautam Adani, accusing him of “defrauding American investors and bribing officials.” The case also names his nephew Sagar Adani, aged 30, senior executives of Adani Green Energy, and Cyril Cabanes of Azure Power Global Ltd.
They have been charged with “conspiracy to commit securities and wire fraud, as well as substantive securities fraud, for their roles in a multi-billion-dollar scheme to obtain funds from US investors and global financial institutions through false and misleading statements.”
According to prosecutors, the accused allegedly used coded references such as “Numero uno” and “the big man” when speaking about Gautam Adani. Court documents further indicate that arrest warrants have been issued against both Gautam Adani and Sagar Adani, which prosecutors plan to circulate to international law enforcement agencies.
Prosecutors also claim that Gautam Adani, Sagar Adani, and former Adani Green Energy CEO Vneet Jaain raised more than 3 billion Dollars through loans and bond issuances by allegedly withholding details of fraudulent conduct from investors and financial institutions.
However, the Adani Group has denied the allegations, stating that the charges made by US prosecutors are baseless and that the group complies with all applicable laws. The group also said it would pursue all available legal remedies.
The allegations centre on the payment of nearly USD 265 million (around ₹2,200 crore) in bribes, purportedly made to obtain high-value solar power contracts.
A global law firm, Sullivan & Cromwell LLP, with the consent of Gautam Adani and his nephew Sagar Adani, requested the US District Court for the Eastern District of New York to defer its decision on a proposal submitted by the SEC on January 21.
Amid this news, shares of the Gautam Adani Group witnessed a sharp sell-off on Friday. On the final trading day of the week, Adani Group stocks fell by more than 15 percent.
Previous Summons Issued by the New York Eastern District Court.
The US Securities and Exchange Commission informed a Brooklyn-based court in New York that it had been unable to obtain assistance from Indian authorities in serving summons. Subsequently, the regulator sought permission to send direct notices to Gautam Adani and Sagar Adani via email.
Summons have reportedly been served at Gautam Adani’s Shantivan Farm residence in Ahmedabad, as well as at his nephew Sagar Adani’s Bodakdev residence in the same city, directing them to respond to the SEC within 21 days.
November 21 notice sent through the New York Eastern District Court says.
“Within 21 days after service of this summons on you (not counting the day you received it)…you must serve on the plaintiff (SEC) an answer to the attached complaint or a motion under Rule 12 of the Federal Rules of Civil Procedure,”
It added,
“If you fail to respond, judgment by default will be entered against you for the relief demanded in the complaint. You also must file your answer or motion with the court,”