SEC still waiting for India to serve Adani summons in US fraud case, flags Mahua Moitra

Nearly 1- months after filing a high-profile securities fraud case, the US Securities and Exchange Commission (SEC) has told a New York federal court that it is still awaiting assistance from Indian authorities to formally serve summons on Gautam Adani and Sagar Adani.

In a status update submitted on 11 August to Judge James R. Cho of the Eastern District of New York, the regulator said efforts to notify the two India-based defendants were continuing under the Hague Service Convention — the international treaty governing cross-border service of judicial documents.

The SEC has sought the help of the Indian ministry of law and justice (MoLJ) to deliver the summons and complaint in the matter, which accuses the Adanis of making false and misleading statements about Adani Green Energy Ltd during a September 2021 debt offering.

The SEC initiated the lawsuit on 20 November 2024, alleging violations of federal securities laws. The defendants have yet to appear before the court. Under Rule 4(f) of the US Federal Rules of Civil Procedure, there is no fixed deadline for serving parties abroad, provided recognised international mechanisms are followed.

The August update revealed that the SEC had also sent “Notices of Lawsuit and Requests for Waiver of Service of Summons” directly to the Adanis and their legal representatives, along with copies of the complaint. Despite these parallel efforts, the regulator said it understood that Indian authorities had not yet completed formal service.

Trinamool Congress legislator Mahua Moitra — who has long been asking questions on favouritism towards the Adani group and crony capitalism — flagged the issue in a social media post claiming the Indian government was in violation of the Hague Service Convention and asked, "What's the problem — can't find Bhai or Rs 2.324 crores in bribes not enough for action?"

The US court filing is the latest in a series of progress reports.

In April, the SEC informed the court that the MoLJ had confirmed receipt of its request and had forwarded it to “the relevant judicial authorities within India” to attempt service. That same month, SEC lawyers contacted counsel for Gautam Adani and sought a waiver of service.

By June, however, the regulator reported that Indian authorities had still not carried out the process, despite ongoing correspondence.

The civil case hinges on allegations that the Adanis misrepresented key facts about Adani Green Energy Ltd to investors in connection with the 2021 bond sale, in violation of US anti-fraud provisions.

Separately, in November 2024, federal prosecutors in the Eastern District of New York unsealed a criminal indictment charging the two with securities fraud, wire fraud, conspiracy to violate the Foreign Corrupt Practices Act, and obstruction of justice.

The US department of justice alleges that they orchestrated a bribery scheme worth more than $250 million to secure solar energy contracts in India, while concealing compliance failures from US investors. That case is also pending before the same court.