New Delhi/New York: 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 that accuses them of misleading investors about a bribery scheme linked to Adani Green Energy Ltd, according to a court filing in New York. The move resolves a key procedural hurdle over how the summons would be served and allows the high-profile case to move forward after being stalled for more than a year, reports said.
In a joint application filed in a federal court in Brooklyn, lawyers for the SEC and for the Adanis said US-based counsel for Gautam and Sagar Adani had agreed to accept service of process on their behalf, subject to court approval. If the judge endorses the stipulation, the Adanis will get 90 days to either file a motion to dismiss the SEC’s complaint or submit their formal defence. The SEC would then have 60 days to file its opposition, followed by 45 days for the defendants to reply, setting out a clear litigation timetable, reports added.
The SEC’s November 2024 civil complaint alleges that the two violated US securities laws by making false and misleading representations to investors and by orchestrating or benefiting from a scheme involving hundreds of millions of dollars in bribes to Indian officials to secure advantages for Adani Green Energy. The Adani Group has repeatedly and vehemently denied all charges of wrongdoing, insisting it maintains the highest standards of governance, transparency and regulatory compliance across jurisdictions.
The development comes after the SEC recently asked the court for permission to use alternative means such as email and service through other US law firms to notify the Adanis, who had remained outside US jurisdiction in India. Reports said that by voluntarily agreeing to accept the notice through counsel while expressly reserving all jurisdictional and other legal defences, the Adanis have cleared the way for the case to be heard on merits in the Eastern District of New York.
CURATED COPY:
New Delhi/New York: 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 that accuses them of misleading investors about a bribery scheme linked to Adani Green Energy Ltd, according to a court filing in New York. The move resolves a key procedural hurdle over how the summons would be served and allows the high-profile case to move forward after being stalled for more than a year, reports said.
In a joint application filed in a federal court in Brooklyn, lawyers for the SEC and for the Adanis said US-based counsel for Gautam and Sagar Adani had agreed to accept service of process on their behalf, subject to court approval. If the judge endorses the stipulation, the Adanis will get 90 days to either file a motion to dismiss the SEC’s complaint or submit their formal defence. The SEC would then have 60 days to file its opposition, followed by 45 days for the defendants to reply, setting out a clear litigation timetable, reports added.
The SEC’s November 2024 civil complaint alleges that the two violated US securities laws by making false and misleading representations to investors and by orchestrating or benefiting from a scheme involving hundreds of millions of dollars in bribes to Indian officials to secure advantages for Adani Green Energy. The Adani Group has repeatedly and vehemently denied all charges of wrongdoing, insisting it maintains the highest standards of governance, transparency and regulatory compliance across jurisdictions.
The development comes after the SEC recently asked the court for permission to use alternative means such as email and service through other US law firms to notify the Adanis, who had remained outside US jurisdiction in India. Reports said that by voluntarily agreeing to accept the notice through counsel while expressly reserving all jurisdictional and other legal defences, the Adanis have cleared the way for the case to be heard on merits in the Eastern District of New York.
