April 8 (Reuters) – Adani Green Energy on Wednesday said group chair Gautam Adani and his nephew Sagar Adani plan to seek dismissal of a civil suit stemming from an alleged bribery scheme filed by the U.S. Securities and Exchange Commission in a New York court by April 30.
- The company said that the defendants have submitted a pre-motion letter to the court indicating their intent to seek dismissal of the SEC’s complaint and said they are willing to attend a pre-motion hearing, if scheduled.
- They argued the court lacks jurisdiction over Gautam and Sagar Adani, and said grounds for dismissal also include case’s “extraterritorial nature”, reflecting how the Adanis and all alleged misconduct were in India, and the bonds were never traded on a U.S. exchange.
- On Tuesday, Reuters reported Adani’s plans to seek dismissal US SEC fraud case, citing his lawyers
- Gautam Adani and his nephew Sagar Adani were charged by the SEC in November 2024 with orchestrating a scheme involving hundreds of millions of dollars in alleged bribes to Indian officials to benefit Adani Green Energy, where both men are directors.
- The securities fraud case is tied to Adani Green’s alleged failure to disclose the scheme in documents for a $750 million bond offering in 2021.
- Adani Green said that it was not a party to these proceedings, and no charges have been brought against it
This report is given by Reuters. The Sen Times holds no responsibility for its content.
How is Gautam Adani seeking dismissal of the US SEC fraud case?
Gautam Adani and Sagar Adani intend to file a formal motion to dismiss the SEC civil suit by April 30, 2026. The legal strategy focuses on challenging the court’s personal jurisdiction and the extraterritorial nature of the claims, asserting that the alleged misconduct occurred entirely outside of U.S. borders.
What are the primary grounds for the Adani Green Energy legal defense?
The defense asserts that the U.S. District Court lacks jurisdiction over foreign defendants because the alleged bribery and subsequent bond disclosures happened in India. Furthermore, they contend the SEC’s complaint fails to establish a sufficient “domestic effect” to warrant the application of American federal securities laws.
Will the Adani SEC fraud case be dismissed by April 30?
While a pre-motion letter was submitted indicating the intent to seek dismissal by April 30, the final judicial ruling rests with the New York court. The court must determine if the SEC’s allegations of “transnational fraud” provide enough legal nexus to override the defense’s jurisdictional objections.
What was the specific role of Adani Green Energy in the SEC complaint?
Adani Green Energy is the corporate entity central to the disputed $750 million bond offering, although it is not a named defendant in the civil suit. The SEC alleges the company’s directors utilized the capital raised to fund projects secured through an illicit bribery scheme involving Indian officials.
Will the SEC bribery charges impact the 2021 bond investors?
Industry standards dictate that securities fraud cases require proof of material loss; however, the Adani defense highlights that no investor losses occurred. The bonds in question matured in 2024, and Adani Green Energy successfully fulfilled all principal and interest payments in full.
