4 min readMumbaiFeb 20, 2025 10:43 PM IST
First published on: Feb 20, 2025 at 05:00 AM IST
The US Securities and Exchange Commission (SEC) has sought assistance from India’s Ministry of Law and Justice regarding a complaint against Gautam Adani and his nephew Sagar Adani in the alleged violation of securities laws. The SEC had accused the Adanis’ for “recklessly making false and misleading representations” concerning Adani Green Energy’s debt offering.
The SEC submitted a status update on Tuesday to Judge Nicholas Garaufis at the US District Court, Eastern District of New York regarding its efforts to serve its complaint on Gautam Adani and Sagar Adani (defendants).
The SEC had filed a complaint on November 20, 2024, alleging that the Adanis “violated the antifraud provisions of the federal securities laws by knowingly or recklessly making false and misleading representations concerning Adani Green Energy Ltd in connection with a September 2021 debt offering by Adani Green”.
The Adani group withdrew the $ 600 million bond offering after the US Department of Justice indicted group chairman Gautam Adani and six related entities of alleged bribery charges. US prosecutors in New York had charged Gautam S Adani, his nephew Sagar Adani, and six others for allegedly offering US $265 million in bribes to Indian government officials to secure lucrative solar energy supply contracts. The indictment, filed on November 21, 2024, alleged schemes to pay over $250 million in bribes, lie to investors and banks, and obstruct justice.
“In a related criminal case arising from many of the same alleged facts, the US Attorney for the Eastern District of New York charged defendants (Gautam Adani and his nephew Sagar Adani) with, among other things, conspiracy and securities fraud,” SEC said.
The Adani group did not respond to a mail from The Indian Express regarding the latest SEC move. When contacted, the spokesperson declined to comment.
As defendants (Adanis) are located in a foreign country, Rule 4(f) of the Federal Rules of Civil Procedure (FRCP) governs service of the summons and complaint, SEC said. Since the filing of its complaint, SEC staff has been working to serve the Adanis (defendants) in accordance with FRCP 4(f). “SEC staff has contacted defendants or their counsel (to the extent SEC staff is aware of such counsel) and has sent them notices of lawsuit and requests for waiver of service of summons, including copies of the complaint,” SEC said.
“Additionally, under Article 5(a) of the Hague Service Convention, the SEC has requested assistance from India’s Ministry of Law and Justice, the central authority for India under the Hague Service Convention. That process is ongoing, and the SEC will continue its efforts to serve defendants,” SEC said.
“Adani and other defendants also defrauded investors by raising capital on the basis of false statements about bribery and corruption, while still other defendants allegedly attempted to conceal the bribery conspiracy by obstructing the government’s investigation,” a press release quoting James E Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI) had said.
US President Donald Trump had signed an executive order last week, directing the US Justice Department to halt prosecuting Americans accused of bribing foreign government officials to win overseas business. While the order is meant to provide relief to US citizens, it will likely come as a breather for key executives of the Adani Group currently facing bribery charges in a US court.
Meanwhile, according to a PTI report, the Congress on Wednesday said Prime Minister Narendra Modi has already declared the Adani issue to be a personal matter and asked whether he would oblige the US SEC request in the ongoing probe against the business group.
“The PM has already declared the Modani issue to be a perso
Meanwhile, according to a PTI report, the Congress on Wednesday said Prime Minister Narendra Modi has already declared the Adani issue to be a personal matter and asked whether he would oblige the US SEC request in the ongoing probe against the business group.
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