Help in Adani fraud probe: US to Modi government
What's the story
The US Securities and Exchange Commission (SEC) has sought the Indian government's help to serve a complaint against Gautam Adani, founder of the Adani Group, and his nephew Sagar Adani.
The request was made under the Hague Service Convention, Reuters reported.
The SEC said "the process is ongoing," and it will continue its efforts to serve defendants.
SEC summons
Adanis summoned over alleged $265M bribes
Notably, in November last year, the US SEC had summoned Gautam and Sagar Adani to explain their stance on the alleged $265 million bribes to obtain lucrative solar power contracts.
The notice issued by the New York Eastern District Court mentioned that if they didn't respond within 21 days, a default judgment would be entered against them for relief demanded in the complaint.
Fraud allegations
SEC alleges violations of antifraud provisions
The SEC filed its complaint on November 20 last year, alleging that the defendants violated the antifraud provisions of federal securities laws.
The violations were related to false and misleading representations concerning Adani Green Energy Ltd in connection with a September 2021 debt offering.
A related criminal case charged defendants with conspiracy and securities fraud among other things.
Denial
Adani Group denies allegations, pledges legal recourse
The SEC is looking into whether Adani breached the US Securities Act when Adani Green raised money from American investors, without revealing a justice department investigation.
The probe was into allegations of bribes paid by the company's directors to unnamed Indian officials between 2020 and 2024.
The Adani Group has denied these allegations as "baseless," promising to pursue all possible legal recourse.
Government stance
Centre clarifies stance on Adani's US legal proceedings
In December 2024, the Ministry of External Affairs (MEA) had clarified that the Indian government had no role in the legal proceedings against Adani-linked entities in the US.
MEA spokesperson Randhir Jaiswal had said that "this is a legal matter involving private firms and individuals and the US Department of Justice."
He had added that "established procedures and legal avenues" would be followed in such cases.
Share performance
Adani's stocks are in the red
In early trading today, stocks of Adani Group tumbled following news about the US SEC's move. Shares of Adani Enterprises dropped by 1% or 22.2 points to hit ₹2,197.20. Meanwhile, Adani Green Energy tumbled 2.68% to hit ₹874.10.