U.S. Authorities Reportedly Moving Toward Resolution in Adani Case
NEW DELHI — U.S. authorities are moving toward resolving fraud allegations against Adani Group Chairman Gautam Adani, potentially bringing an end to a case that has been pending for more than a year, according to people familiar with the matter.
The U.S. Department of Justice could announce the dropping of charges as early as this week, the people said. The Securities and Exchange Commission is also moving toward settling a parallel civil fraud case it brought against Adani and others in November 2024, according to people familiar with the matter.
While the Justice Department could move to effectively drop the charges because the defendants are outside the United States, a resolution with the SEC would likely involve a monetary penalty, the people said.
The SEC case, filed alongside a criminal complaint by the Justice Department, alleges that Adani and others sought to pay more than $250 million in bribes to Indian officials to secure solar energy contracts and concealed the alleged scheme from U.S. investors and banks while raising funds.
Attorneys for Gautam Adani and his nephew, Sagar Adani, have told the court there is no credible evidence supporting the alleged bribery scheme. They also argued that the SEC lacks the necessary jurisdiction over the two men and that the alleged misstatements at the center of the case are not actionable.
Adani Group has denied the allegations, saying none of its entities or executives has been charged under the U.S. Foreign Corrupt Practices Act. The company has also said Adani Green Energy, the renewable energy business that raised the funds, is not a party to the proceedings.
Last month, a U.S. judge granted Gautam Adani’s request to schedule a hearing on a motion to dismiss the SEC’s alleged fraud case. The motion argues that the case represents an impermissible extraterritorial application of U.S. law and that the SEC failed to establish actionable claims under U.S. securities laws.
In court filings, Adani’s legal team argued that the case lacks a sufficient jurisdictional basis. The motion also challenges the SEC’s claims related to a 2021 bond sale by Adani Green Energy, saying the $750 million offering was conducted outside the United States under Rule 144A and Regulation S exemptions. The securities were sold to non-U.S. underwriters and later partly resold to qualified institutional buyers, according to the filing.
The Adanis argued that the SEC lacks personal jurisdiction because neither man had sufficient contacts with the United States or direct involvement in the bond offering. Their lawyers said the complaint does not allege that Gautam Adani approved the issuance, attended key meetings or directed any activity toward U.S. investors.
The filing also said the SEC did not allege any investor losses.
“The bonds have matured, and Adani Green repaid all principal and interest in full to investors in 2024,” the filing said.
Adani’s lawyers also argued that the SEC’s case is impermissibly extraterritorial because the securities were not listed in the United States, the issuer is Indian and the alleged misconduct occurred entirely in India. (Source: IANS)
