The SEC has summoned Gautam Adani and Sagar Adani over allegations of paying $265 million in bribes to secure solar power contracts. The charges, unsealed in New York, accuse the Adani Group of misleading investors and obstructing an investigation since 2022.
By PC Bureau
The U.S. Securities and Exchange Commission (SEC) has summoned Gautam Adani, founder and chairman of the Adani Group, and his nephew, Sagar Adani, to respond to allegations of paying $265 million (₹2,200 crore) in bribes to secure solar power contracts in India. Delivered to Gautam Adani’s residence at Shantivan Farm and Sagar Adani’s Bodakdev residence in Ahmedabad, the summons demands a formal reply within 21 days.
The notice, dated November 21 and issued via the New York Eastern District Court, warns that a failure to respond could lead to a default judgment. It directs the defendants to file their answers with the court in compliance with Federal Rules of Civil Procedure.
Allegations of Corruption
The allegations, outlined in an indictment unsealed in New York, accuse the Adani Group of bribing Indian government officials between 2020 and 2024 to secure lucrative solar energy contracts. These deals were projected to yield $2 billion in profits over two decades. The SEC’s investigation also claims that the Adani Group raised $2 billion from international investors using misleading statements about its anti-bribery policies.
The charges extend beyond the SEC, with the U.S. Department of Justice (DOJ) separately indicting eight defendants, including Gautam and Sagar Adani, as well as Cyril Cabanes, an executive with Azure Power Global. The DOJ alleges obstruction of its investigation, which began in 2022.
SEC and DOJ Statements
U.S. Attorney Breon Peace described the allegations as a systematic attempt to undermine fair market practices, stating:
“The defendants orchestrated an elaborate scheme to bribe Indian government officials… while lying to investors to raise capital.”
The SEC emphasized its commitment to holding global corporations accountable for corrupt practices, especially when they affect U.S. financial markets.
The Adani Group has denied the allegations, asserting its commitment to governance, transparency, and legal compliance. In a public statement, the conglomerate reassured stakeholders:
“The Adani Group has always upheld and is steadfastly committed to maintaining the highest standards of governance… We are fully compliant with all laws.”
The summons marks a critical moment for the Adani Group, which has a vast business portfolio spanning ports, energy, and infrastructure. The case could significantly impact its international reputation and investor confidence, especially as the conglomerate continues to expand its global operations.
With both the SEC and DOJ pursuing the matter, the Adani Group faces a complex legal battle in a high-profile case that could have far-reaching implications for international corporate governance.
