Gautam Adani and his nephew, Sagar Adani, have formally acknowledged a legal notice from the US Regulator Securities and Exchange Commission (SEC) following a 15-month period. This development relates to a civil fraud case filed by the SEC, with documents filed in a New York court indicating that Adani’s legal team has agreed to accept the regulatory papers.
Legal Proceedings and Allegations
The case, which originated in November 2024, involves allegations by the SEC that Adani Green Energy Limited (AGEL) misled investors. With the notice now accepted, the Adani Group is provided a 90-day window to present its response. This acceptance, facilitated by a consent letter signed between Adani and the SEC and filed in the Brooklyn Federal Court in New York, streamlines the legal process by removing the need for a judge to determine the method of notice delivery to the Adani family.
The SEC asserts that Adani Green Energy supplied inaccurate information while securing funds from US investors. Additionally, US prosecutors have brought forth allegations in a separate criminal case, accusing Adani of conspiring to offer $265 million (approximately 2,429 crore rupees) in bribes to secure solar power contracts within India. The Adani Group has explicitly refuted all these claims, stating they are unfounded.
Adani Group’s Stance and Representation
Adani Green Energy (AGEL) has clarified through stock exchange disclosures that accepting the notice is solely a procedural legal step and does not imply an acceptance of the New York court’s jurisdiction. The company maintains its full right to defense and intends to seek the dismissal of the case. Furthermore, AGEL has stated it is not a party to this specific matter.
Gautam Adani has appointed Robert Giuffra Jr., a distinguished Wall Street attorney and co-chair of ‘Sullivan & Cromwell’ law firm, to represent him. Mr. Giuffra, who has previously served as legal counsel to former US President Donald Trump, formally communicated Adani’s agreement to accept the notice to the court. The company has also emphasized that neither Gautam Adani nor Sagar Adani face direct bribery or corruption charges under the US Foreign Corrupt Practices Act (FCPA), underscoring that the current proceedings are civil in nature and not criminal. Adani Green Energy projects that its operations will remain unaffected and business will continue as usual.
