Adani Seeks Dismissal Of SEC Fraud Lawsuit, Calls Case Legally Flawed And Outside US Jurisdiction
NEW YORK — Indian billionaire Gautam Adani has asked a U.S. court to dismiss a securities fraud lawsuit filed by the Securities and Exchange Commission, arguing that the case falls outside U.S. jurisdiction and fails to establish any wrongdoing.
In a pre-motion letter filed ahead of a planned April 30 motion in the U.S. District Court for the Eastern District of New York, Adani and his nephew Sagar Adani denied all allegations and said the case represents an improper attempt to apply U.S. law to conduct that occurred entirely outside the country.
The defendants argued that the court lacks personal jurisdiction, stating that neither has sufficient ties to the United States or direct involvement in the bond offering at the center of the case.
The SEC’s claims stem from a $750 million bond sale conducted in 2021 by Adani Green Energy Ltd., the group’s renewable energy arm. According to the filing, the bonds were issued under exemptions that allow private resales to qualified institutional buyers and non-U.S. investors.
Adani’s legal team said the securities were not listed in the United States, the issuer is an Indian company, and the alleged misconduct took place entirely in India, making the case an impermissible extraterritorial application of U.S. securities law.
They added that the bonds were sold outside the United States to non-U.S. underwriters, who later resold some of the notes to qualified institutional buyers, including a limited number of investors in the United States. The company itself was not a party to those secondary transactions, the filing said.
The motion also argues that the SEC failed to state a valid legal claim, asserting that the defendants are not based in the United States and do not conduct activities that would subject them to U.S. jurisdiction.
Even if the allegations are accepted as true, the complaint does not establish any actionable violation or meet the legal threshold required for the case to proceed, the filing said.
Adani’s lawyers also argued that the SEC has not shown that Gautam Adani approved the bond issuance, participated in key meetings, or directed any activity toward U.S. investors.
Citing U.S. Supreme Court precedent, the defendants said the SEC failed to demonstrate a “domestic transaction,” a key requirement for applying U.S. securities laws.
The filing further contends that statements cited by the SEC — including those related to environmental, social, and governance commitments, anti-corruption practices, and corporate reputation — amount to non-actionable corporate “puffery” that investors cannot reasonably rely on.
The letter also said the SEC failed to link Sagar Adani to any allegedly false or misleading statements, particularly those directed at U.S. investors.
The defendants said they are seeking full dismissal of the case and are prepared to appear for a pre-motion conference if required. (Source: IANS)
