A storm brews for Adani Group as the U.S. Department of Justice and SEC level serious fraud and bribery allegations against its top executives. With criminal charges unsealed, the global business empire faces its biggest test yet!
BY PC Bureau
The U.S. Securities and Exchange Commission (SEC) has informed a federal judge that its efforts to serve its complaint on Gautam Adani and Sagar Adani in the alleged bribery scheme are “ongoing,” including a request for assistance from Indian authorities.
The SEC submitted a status update on Tuesday to Judge Nicholas Garaufis at the U.S. District Court for the Eastern District of New York regarding its efforts to serve its complaint on the two individuals.
The SEC stated that both Gautam Adani and Sagar Adani “are located in India, and the SEC’s efforts to serve them there are ongoing, including through a request for assistance to the Indian authorities to effect service under the Hague Service Convention for Service Abroad of Judicial and Extrajudicial Documents in Civil or Commercial Matters.”
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According to the SEC, its complaint dated November 20 last year alleges that Gautam Adani and Sagar Adani violated the antifraud provisions of federal securities laws by “knowingly or recklessly making false and misleading representations concerning Adani Green Energy Ltd in connection with a September 2021 debt offering by Adani Green.”
Reuters Flash: US SEC update on Adani case. SEC seeking help from Indian authorities in serving its complaint to Gautam & Sagar Adani in relation to indictment. Efforts "ongoing". SEC requested assistance from India’s Ministry of Law under the Hague Service Convention pic.twitter.com/nMceCcTsB7
— Aditya Kalra (@adityakalra) February 18, 2025
It further noted that because the “defendants are located in a foreign country, Rule 4(f) of the Federal Rules of Civil Procedure (FRCP) governs service of the Summons and Complaint.” The SEC explained that FRCP 4(f) contains no set time limit for service and that the agency may serve defendants “by any internationally agreed means of service that is reasonably calculated to give notice, such as the Hague Service Convention.”
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The SEC’s update, submitted by its Counsel Christopher Colorado, cited a case that affirms service via the Hague Service Convention as a permissible means of serving defendants in India.
Since filing the complaint, SEC staff “has been working to serve Defendants in accordance with FRCP 4(f).” The agency has contacted the defendants or their legal representatives where possible and has sent them Notices of Lawsuit and Requests for Waiver of Service of Summons, along with copies of the complaint.
“Additionally, under Article 5(a) of the Hague Service Convention, the SEC has requested assistance from India’s Ministry of Law and Justice, the Central Authority for India under the Hague Service Convention,” the update stated.
The SEC emphasized that this process remains ongoing and affirmed that it “will continue its efforts to serve Defendants in India by the methods prescribed by FRCP 4(f)—including under the Hague Service Convention—and will keep the Court apprised of its progress.”
In November last year, the SEC charged Gautam Adani, Sagar Adani, and Cyril Cabanes, an executive of Azure Power Global Ltd., with offenses related to a massive bribery scheme.
In a parallel action, the U.S. Attorney’s Office for the Eastern District of New York unsealed criminal charges against Gautam Adani, Sagar Adani, Cabanes, and other individuals linked to Adani Green and Azure Power.
According to U.S. authorities, Adani is being indicted by the Department of Justice (DOJ) for allegedly orchestrating a years-long scheme to pay $250 million in bribes to Indian officials in exchange for favorable solar power contracts.
The Adani Group has strongly denied these allegations, calling them “baseless.”
A spokesperson for the Adani Group stated: “The allegations made by the U.S. Department of Justice and the U.S. Securities and Exchange Commission against directors of Adani Green are baseless and denied.”
The spokesperson also pointed to a statement from the U.S. Department of Justice, which stated: “The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.”
The Adani Group has emphasized that “all possible legal recourse will be sought.”
“The Adani Group has always upheld and is steadfastly committed to maintaining the highest standards of governance, transparency, and regulatory compliance across all jurisdictions of its operations. We assure our stakeholders, partners, and employees that we are a law-abiding organization, fully compliant with all laws,” the spokesperson added.
