NEW DELHI: Adani Group chairman Gautam Adani and his nephew Sagar Adani, executive director of Adani Green, have agreed to settle a civil fraud case in the United States by paying combined penalties of $18 million. According to court documents, Gautam Adani will pay a penalty of $6 million, while Sagar Adani will pay $12 million to conclude the lawsuit filed by the US Securities and Exchange Commission (SEC).
Background of the Case
In November 2024, the SEC and the US Department of Justice (DoJ) alleged that the Adanis orchestrated a bribery scheme involving government officials to secure solar power contracts. The scheme was allegedly concealed from US investors and lenders while the group was raising capital. The SEC civil case sought penalties and injunctive relief for securities fraud violations.
DOJ Actions
Separately, the DoJ is moving to drop fraud charges against Gautam Adani, as reported earlier by Bloomberg. The department’s actions are being closely monitored by market participants and legal experts. The settlement of the civil case does not necessarily preclude further action by the DoJ, but the reported move to drop charges signals a potential resolution.
Impact on Adani Group
The settlement paves the way for the ports-to-energy conglomerate to return to international markets to fund its massive expansion plans. Bloomberg reported on Friday that the Adani Group is reviving plans to seek about $1 billion through a US-listed dollar-denominated bond. This development could restore investor confidence and facilitate access to global capital markets, which had been constrained by the legal uncertainties.
The Adani Group has been pursuing aggressive growth across sectors including ports, energy, and infrastructure. The resolution of the US legal issues is expected to support these ambitions, allowing the conglomerate to tap into international funding sources more easily.
