Daijiworld Media Network – New York
New York, Jan 31: Billionaire industrialist Gautam Adani and his nephew Sagar Adani have agreed to receive a legal notice from the US Securities and Exchange Commission (SEC) in a civil fraud lawsuit accusing them of misleading investors over an alleged bribery-linked scheme, according to a court filing.
The stipulation, however, is subject to court approval.
As per the filing in a federal court in Brooklyn, New York, the SEC and US-based lawyers representing Gautam and Sagar Adani agreed to accept service of the regulator’s legal papers, removing the need for a judge to decide how the defendants should be served.
If approved, the procedural step is expected to allow the case to move forward, while giving the Adanis time to either file a motion to dismiss or submit their defence within 90 days. The SEC can then file its opposition within 60 days, followed by a 45-day window for the defendants to reply.
The SEC had filed the lawsuit in November 2024, alleging that the two violated US securities laws by making “false and misleading representations” related to Adani Green Energy Limited (AGEL).
In addition to the SEC’s civil complaint, federal prosecutors in Brooklyn have also accused the Adanis and others of allegedly helping drive a $265 million bribery scheme in India to secure solar power contracts.
Both matters had reportedly remained stalled for over a year as the notices could not be served since the Adanis are in India. Recently, the SEC had sought permission from a US judge to use alternative methods of service, including email and service through US law firms representing the Adanis.
In a stock exchange filing, AGEL stated that the decision by Gautam and Sagar Adani to accept the notice is a procedural step and that they would move to dismiss the SEC complaint or file responsive pleadings.
The company also reiterated that the two directors have not been “charged with violation(s) of the United States Foreign Corrupt Practices Act,” adding that there are no bribery or corruption charges against them under that Act.
AGEL further clarified that it is not a party to the proceedings and that no charges have been brought against the company.
Meanwhile, Gautam Adani has reportedly hired prominent Wall Street lawyer Robert Giuffra Jr, co-chair of Sullivan and Cromwell, to defend him in the case.
The court filing noted that while the defendants agreed to accept service, they have reserved all legal defences, including those related to jurisdiction.
Officials said AGEL’s business operations continue normally and that the company remains focused on its projects and commitments, maintaining strong governance and regulatory compliance.