Gautam Adani and nephew agree to accept SEC notice in US civil fraud case

Indian billionaire Gautam Adani and his nephew Sagar Adani have agreed to accept a legal notice from the US Securities and Exchange Commission (SEC) in a civil fraud lawsuit, according to a court filing in New York, marking a significant procedural step in the case.

The agreement, which is subject to court approval, allows US-based lawyers representing the two men to formally accept service of the SEC’s complaint, removing the need for the judge to decide on alternative methods of notification. The joint stipulation has been filed in the Eastern District of New York.

If approved, the arrangement will enable the case to move forward, giving the Adanis up to 90 days to file a motion to dismiss the complaint or submit their defence. The SEC would then have 60 days to respond, followed by a 45-day window for the defendants to file replies.

The SEC filed the civil lawsuit in November 2024, alleging that Gautam and Sagar Adani violated US securities laws by making false and misleading statements to investors regarding Adani Green Energy Ltd (AGEL), particularly in relation to an alleged bribery scheme.

Separately, federal prosecutors in Brooklyn have brought criminal charges against the Adanis and others, accusing them of helping to facilitate a USD 265 million bribery scheme in India to secure solar power contracts. The Adani Group has consistently denied all allegations.

Both the civil and criminal cases had been stalled for more than a year as the Adanis, who remain in India, had not been served with legal papers. The SEC recently sought court permission to use alternative service methods, including email and service through US law firms representing the Adanis.

In a stock exchange filing, AGEL said the decision by Gautam and Sagar Adani to accept service was purely procedural and did not imply acceptance of the court’s jurisdiction. The company said the defendants intend to seek dismissal of the SEC’s complaint or file responsive pleadings.

AGEL also reiterated that neither Gautam nor Sagar Adani has been charged with violations of the US Foreign Corrupt Practices Act and that there are no bribery or corruption charges against them under that law. The company emphasised that it is not a party to the proceedings and that no charges have been brought against it.

The filing further noted that the proceedings involving the Adanis are civil in nature and that no criminal charges have been brought against the company’s directors. AGEL said its business operations continue as normal across all jurisdictions, with projects and financial commitments progressing as planned.

Gautam Adani has hired prominent Wall Street lawyer Robert Giuffra Jr, co-chair of Sullivan & Cromwell, to represent him. Giuffra confirmed to the court that he had agreed to accept service of the lawsuit on behalf of both defendants, while expressly preserving all legal defences, including challenges to personal jurisdiction.

The Adani Group said it continues to maintain high standards of governance, transparency and regulatory compliance, and will contest the SEC’s allegations through the appropriate legal channels.

With PTI inputs