Gautam Adani has sought time till January 30 following a summons from the US Securities and Exchange Commission. The market regulator had sought to serve the billionaire businessman with a legal notice last week — enlisting the help of a New York court to bypass the Indian government. Lawyers representing Adani had subsequently contacted the SEC to discuss the matter and asked the court to defer its ruling.
According to a Reuters report, the civil case was filed against Gautam Adani and group executive Sagar Adani over alleged fraud and a $265 million bribery scheme last year. The regulatory body had been trying to send the summons to the duo for quite some time, and recently enlisted the court’s aid. The report quoted the SEC as saying that India had previously refused its two procedural requests to serve the summonses for its civil case.
According to the latest filing by Sullivan and Cromwell LLP, counsel for both parties have exchanged comments and discussions remain underway with the Adanis. An Indian Express report cited the document to add that the counsel “fully expected to finalise the stipulation shortly” and sought time till the morning of January 30.
The New York court had reportedly accepted the request.
Baseless allegations: Adani
Adani group has called the allegations “baseless” and said that it would seek “all possible legal recourse” to defend itself. A Reuters report citing the SEC also indicated that the Indian law ministry had refused two requests to have its summonses served on the Adanis. The regulator had then asked a judge to serve the the Adanis’ US-based lawyers, with copies emailed to the India-based duo.
Adani group firms shed $12.5 billion market cap on Friday
India’s Adani group firms shed $12.5 billion in market cap on Friday, after a US markets regulator asked a court for help in serving the summons to the Adanis.
U.S. authorities in November 2024 accused Adani group executives of being part of a scheme to pay bribes to Indian officials for buying electricity produced by Adani Green Energy , a unit of the Adani group. The SEC filed a civil case against Gautam Adani and Sagar Adani, which is separate from the U.S. Department of Justice’s criminal indictment against the Adanis and several other defendants. The Justice Department case remains open, court records show.The SEC complaint says the executives also misled U.S. investors by providing information about the company’s anti-graft practices.The two rejections by India to serve the summons, the SEC filing said, were based on procedural reasons, such as signature and seal requirements, none of which it said is needed in summons sent to individuals in another country under the international treaties of the Hague Convention.