Adani agrees to receive legal notice in US SEC civil fraud case

Billionaire Gautam Adani and his nephew, Sagar Adani, have agreed to receive a legal notice from the US Securities and Exchange Commission in a civil fraud lawsuit alleging they misled investors about a bribery scheme, according to a court filing. The stipulation is subject to court approval.

In a filing in a federal court in Brooklyn, New York, the SEC and US-based lawyers for Gautam and Sagar Adani said the lawyers had agreed to accept service of the regulator’s legal papers, removing the need for a judge to rule on how the defendants should be served.

The joint application (or stipulation) has been submitted for approval from the court concerned. This is a standard procedural step in US legal proceedings that allows for the orderly resolution of cases.

If agreed by the judge, the joint application will allow the SEC matter to progress while giving time to the Adanis to either file their motion to dismiss or their defence within 90 days. The SEC thereafter can file their opposition within a further period of 60 days. The defendants can file their replies to such opposition within 45 days.

The SEC had filed a lawsuit in November 2024 alleging that the two violated US securities laws by making false and misleading representations about Adani Green Energy Ltd (AGEL).

In addition to the SEC’s civil complaint, federal prosecutors in Brooklyn, New York, have charged the Adanis and others with allegedly helping to drive a $265 million bribery scheme in India to secure solar power contracts. The Adani Group has repeatedly denied all accusations made against it or the founder family.

Both lawsuits have been stalled for more than a year as both Adanis remain in India and couldn’t be served the notices. Last week, the SEC asked a US judge to allow alternative methods to notify them of the suit, including service by email and through other US law firms representing the Adanis.

AGEL, the renewable energy arm of the ports-to-cement conglomerate Gautam Adani leads, in a stock exchange filing, said the defendants - Gautam and Sagar Adani - agreeing to accept the notice is a procedural step and they would seek dismissal of the SEC's complaint or file responsive pleadings.