Adani Legal Team Granted Extension in US Court Proceedings
Legal representatives for Gautam Adani and Sagar Adani have successfully requested additional time from a United States court to report on their ongoing discussions with the U.S. Securities and Exchange Commission (SEC). The court has granted their request, extending the deadline to January 30 for providing updates regarding the SEC's motion seeking authorization for alternative service methods, specifically through email communication.
Background of the Legal Proceedings
On January 22, immediately following the SEC's filing of a motion for an order authorizing Alternative Service Methods, the New York-based law firm Sullivan and Cromwell LLP initiated contact with the SEC on behalf of the Adani defendants. The following day, January 23, the Adani legal team formally requested the Court for the Eastern District of New York to postpone its ruling on the SEC's motion while discussions with the U.S. regulator continued.
The court subsequently ordered both parties to provide a status update on their discussions by January 26. In response to this directive, the Adani lawyers submitted their update on January 26, specifically seeking an extension until January 30 to finalize their discussions and documentation.
Details of the Latest Court Filing
In their most recent court submission, Sullivan and Cromwell LLP stated: "Counsel for the parties have exchanged comments on the stipulation, and counsel for Defendants are continuing to discuss the stipulation with their clients, both of whom are located in India. Counsel for the parties fully expect to finalize the stipulation shortly, and, in light of the time difference with India, we will file it by no later than the morning of Friday, January 30."
The New York court has officially accepted this request for additional time, allowing the legal teams to continue their negotiations and prepare their final submissions.
India's Law Ministry Involvement and Objections
The SEC's pursuit of alternative service methods stems from unsuccessful attempts to serve legal notices to Gautam and Sagar Adani through traditional channels under the Hague Convention. As previously reported, India's Ministry of Law and Justice has twice declined to formally serve summons issued by the SEC, citing specific technical and legal objections.
In April 2025, the law ministry rejected the SEC's initial request, stating that the authenticity of the documents could not be properly verified. The ministry specifically noted that "the forwarding letter bears no seal & signature and the Model Form bears no seal of the requesting authority as well."
When the SEC countered that the Hague Convention does not mandate such formalities and resubmitted the documents, the law ministry again denied service of summons in December 2025, this time citing U.S. law provisions. The ministry referenced Rule 5(b) of the Securities and Exchange Commission's Informal and Other Procedures, stating that the summons did not fall within the specified categories and therefore could not be served.
SEC's Position and Allegations
In its motion before the New York court, the SEC has argued that India's objections "have no basis in the (Hague) Convention, which governs service procedures, not the SEC's underlying authority to bring enforcement actions."
The legal proceedings trace back to November 2024, when the SEC filed civil charges alleging that Gautam and Sagar Adani were involved in a bribery scheme during a September 2021 note offering by Adani Green Energy Limited. This offering reportedly raised $750 million, including approximately $175 million from U.S. investors.
Adani Group's Response and Position
The Adani group has consistently maintained that the SEC's allegations are without foundation. In multiple statements, the conglomerate has emphasized its intention to pursue all available legal avenues to challenge the charges.
In a recent filing to stock exchanges, Adani Green Energy clarified: "The Company is not a party to these proceedings, and no charges have been brought against it. Further, as clarified in our intimation to the stock exchanges dated November 27, 2024, the Defendants have not been charged with violation/(s) of the United States Foreign Corrupt Practices Act i.e. there are no charges of bribery or corruption against the Defendants. The SEC proceedings are civil in nature."
The ongoing legal developments continue to attract significant attention in both Indian and international financial circles, with implications for cross-border regulatory cooperation and corporate governance standards.
