Adanis agree to US SEC notice after year-long standoff

After being stuck in a legal limbo for over a year, Gautam Adani and his nephew Sagar Adani have finally accepted a notice from the US Securities and Exchange Commission (SEC) through their US counsel. This move comes after the SEC sought alternative methods of serving the notice, signaling the end of a prolonged stalemate in the civil fraud case against them.

The SEC initially filed a complaint against the Adanis in November 2024, accusing them of misleading investors about a bribery scheme. However, due to the defendants being in India and formal service not being completed, the case could not progress. The SEC requested permission from a federal judge to use alternative service methods, eventually leading the Adanis’ counsel to agree to accept service, while maintaining their right to challenge personal jurisdiction.

The SEC’s request for alternative service indicated that conventional methods had failed, prompting the judge to authorize email service. This not only resolved the logistical issue of service but also paved the way for the case to move forward. By accepting the notice, the Adanis did not concede to the SEC’s allegations but merely removed the delay caused by the service dispute.

Reports suggested market sensitivity surrounding the case, with Adani companies emphasizing that they were not parties to the lawsuit and that business operations continued as usual. Adani Green Energy clarified that the defendants intended to either dismiss the complaint or file responsive pleadings after accepting service. The hiring of prominent Wall Street lawyer Robert Giuffra Jr and arguments aligning the prosecution with political priorities indicated a strategic approach to the case.

Accepting service allowed the Adanis to move past the service-related delay and focus on legal arguments in the courtroom, particularly regarding jurisdiction and potential dismissal motions. The next phase is expected to center on challenges to jurisdiction and possible motions to dismiss, with the defense carefully navigating legal and political considerations.

While the acceptance of service signifies progress in the case, it does not imply an admission of guilt. The Adani Group has denied the SEC’s claims and will now have the opportunity to defend themselves in court. The SEC’s case alleges securities-law violations related to investor representations and is accompanied by parallel criminal charges by the US Attorney’s Office.

By ending the service-related delay and transitioning to legal arguments, the defendants have set the stage for the next phase of the case, where the strength of the defense and the SEC’s response will come to light. The focus has shifted from service mechanics to substantive legal issues that the court will now evaluate.