The U.S. Securities and Exchange Commission has reached an agreement with U.S.-based counsel for Gautam Adani and his nephew Sagar Adani to accept service of a civil fraud complaint, potentially allowing the regulator's lawsuit to move forward after a period of delay.
In a filing submitted on Friday in federal court in Brooklyn, New York, the SEC and lawyers representing the two defendants said they had agreed that the lawyers would accept the SEC's legal papers. That agreement removes the need for U.S. District Judge Nicholas Garaufis to issue a separate ruling on the method of service.
If Judge Garaufis approves the arrangement, the Adanis will be given 90 days to respond to the SEC's complaint. Their responses could include motions seeking dismissal of some or all of the claims, the filing notes.
Robert Giuffra, who represents Gautam Adani, declined to comment. Sean Hecker, counsel for Sagar Adani, also declined to comment when contacted.
The SEC originally charged the Adanis in November 2024, alleging violations of U.S. securities laws. The complaint accuses them of running a scheme to pay, or to promise to pay, hundreds of millions of dollars in bribes to Indian government officials with the alleged purpose of benefiting Adani Green Energy, where both men serve as executives and directors. The filing repeats that both defendants are located in India, and that the SEC had previously encountered difficulties effecting service on them.
U.S. prosecutors brought a related criminal case in November 2024 naming the Adanis and several other defendants. According to filings, that criminal matter has seen no public developments for more than a year. The SEC's civil case had been stalled for most of that same period while the parties and the court addressed questions about proper service.
Gautam Adani, 63, is founder and chair of the Adani Group. Publicly available estimates put his net worth at about $59 billion, as reported by Forbes magazine.
The filing and the procedural agreement clarify the immediate timeline for the SEC's civil action, but they do not resolve the underlying allegations. Should the judge approve the acceptance of service, the next substantive steps will include any formal responses by the defendants and subsequent judicial rulings on motions that may follow.
Summary
The SEC and U.S.-based lawyers for Gautam Adani and Sagar Adani have agreed that those lawyers will accept service of a civil fraud complaint in a Brooklyn federal court filing. If the judge approves, the defendants will have 90 days to respond to the SEC's complaint that alleges a scheme to pay or promise payments of hundreds of millions of dollars in bribes to Indian officials to benefit Adani Green Energy. A related criminal case filed in November 2024 has had no public developments for over a year.
Key points
- Procedural step resolved - U.S.-based counsel for the Adanis agreed to accept SEC service, potentially unblocking the civil case.
- Allegations of bribery target corporate executives - The SEC's complaint accuses the Adanis of arranging payments or promises of payments to benefit Adani Green Energy, impacting the renewable energy and conglomerate sectors.
- Parallel criminal case stalled - Prosecutors filed a related criminal action in November 2024 that has seen no public movement for more than a year, contributing to uncertainty in legal timelines and potential market reactions.
Risks and uncertainties
- Unresolved substantive allegations - The acceptance of service does not adjudicate the bribery claims, leaving material legal risk for the companies and individuals named, and potential implications for investors in related equities.
- Parallel criminal proceedings inactive publicly - The criminal case filed alongside the civil suit has had no public developments for over a year, creating uncertainty around timing and outcomes for both legal tracks.
- Response and litigation pathway - The Adanis will have 90 days to respond, and any motions to dismiss or other procedural filings could extend the timeline and affect market clarity for affected sectors.