US SEC Case: Adani Lawyers Seek Court to Dismiss Fraud Charges
Lawyers representing Gautam Adani have moved to challenge a fraud case filed by the United States Securities and Exchange Commission (SEC), arguing that the regulator lacks jurisdiction and that the allegations are not legally sustainable.
Jurisdiction Challenge Raised in US Court
In a letter submitted on Tuesday to a federal judge in Brooklyn, New York, legal representatives of Gautam Adani and his nephew Sagar Adani stated their intention to formally seek dismissal of the case by 30 April.
The defence argued that the US SEC does not have the necessary jurisdiction over the two individuals. It further maintained that the alleged misstatements forming the basis of the case are not actionable under applicable laws
Background of SEC Allegations
The SEC had filed its lawsuit in November 2024, alleging violations of US securities laws. The complaint claims that Gautam Adani and Sagar Adani made false and misleading representations regarding Adani Green Energy Ltd.
The regulator also alleged that the individuals were involved in a bribery scheme amounting to $250 million in India, aimed at securing solar power contracts. In parallel, federal prosecutors in Brooklyn initiated criminal charges related to the same allegations.
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Defence Rejects Bribery and Fraud Claims
The legal team representing the Adanis argued that the SEC has attempted to reframe anti-bribery allegations as securities fraud due to limitations in pursuing direct claims. The lawyers stated there is no credible evidence supporting the alleged bribery scheme.
They also contended that the complaint does not establish that Gautam Adani authorised the bond issuance or directed any actions connected to the United States. The defence emphasised that such links are essential to sustain the case.
Court Proceedings and Next Steps
The letter was submitted by legal counsel including Robert Giuffra Jr. of Sullivan & Cromwell, along with Sean Hecker and Timothy D. Sini, representing Sagar Adani.
US District Judge Nicholas Garaufis has agreed to hear the matter and directed both parties to coordinate on scheduling a pre-motion conference. The defence has indicated readiness to participate if the court fixes a date.
Market Reaction to Legal Developments
Following the legal update, shares of Adani Enterprises Ltd., the flagship company of the Adani Group, rose by as much as 11.5% during trading in Mumbai on Wednesday.
Other Adani Group stocks also recorded gains, with the overall market capitalisation of the group increasing by nearly $11 billion during the session.
The Adani Group has previously described the US allegations as baseless. The current legal move marks a significant step in contesting the SEC’s claims, as proceedings continue in the US court.