Adani and Nephew Agree to Accept SEC Legal Notice in US Civil Fraud Case
In a significant development in the ongoing legal proceedings, billionaire industrialist Gautam Adani and his nephew, Sagar Adani, have formally agreed to receive a legal notice from the US Securities and Exchange Commission (SEC) in a civil fraud lawsuit. The lawsuit alleges that the two made misleading representations to investors concerning a bribery scheme. This agreement was documented in a recent court filing submitted to a federal court in Brooklyn, New York.
Procedural Agreement Awaits Judicial Approval
The stipulation, which is currently subject to court approval, represents a standard procedural step in US legal proceedings. According to the filing, lawyers representing both Gautam and Sagar Adani, based in the United States, have consented to accept service of the SEC's legal papers. This mutual agreement effectively eliminates the necessity for a judge to rule on the method of serving the defendants, thereby streamlining the initial phase of the litigation process.
The joint application has been formally submitted for approval from the concerned court. If the judge grants this approval, it will allow the SEC matter to progress while providing the Adanis with a structured timeline to respond. Specifically, they will have 90 days to either file a motion to dismiss the complaint or present their defence. Following this, the SEC will have an additional 60 days to file their opposition, after which the defendants can submit their replies within 45 days.
Background of the SEC Lawsuit and Related Charges
The SEC initially filed its lawsuit in November 2024, accusing Gautam and Sagar Adani of violating US securities laws. The allegations center on claims that they made false and misleading representations about Adani Green Energy Ltd (AGEL). In a parallel development, federal prosecutors in Brooklyn have charged the Adanis and others with allegedly facilitating a $265 million bribery scheme in India. This scheme was purportedly aimed at securing solar power contracts.
It is important to note that the Adani Group has consistently denied all accusations leveled against it or its founder family. Both lawsuits had been stalled for over a year due to logistical challenges in serving the legal notices, as both Adanis remained in India. Last week, the SEC sought permission from a US judge to employ alternative notification methods, including service via email and through US law firms representing the Adanis.
AGEL's Response and Clarifications
In response to these developments, AGEL issued a statement clarifying the procedural nature of the agreement. The company emphasized that the defendants' decision to accept the notice is purely a procedural step and does not imply acceptance of the court's jurisdiction. AGEL stated that Gautam and Sagar Adani intend to seek dismissal of the SEC's complaint or file responsive pleadings as appropriate.
AGEL further reiterated its previous position, noting that the directors, Gautam Adani and Sagar Adani, have not been charged with violations of the United States Foreign Corrupt Practices Act. The company clarified that there are no charges of bribery or corruption directly against the defendants in this context. Additionally, AGEL highlighted that the company itself is not a party to these proceedings, and no charges have been brought against it.
This case continues to unfold as legal experts monitor the proceedings closely, given its implications for international business regulations and corporate governance standards.
