US Court Accepts Gautam Adani’s Plea To Dismiss Markets Regulator Case
Court Grants Hearing on Dismissal Request
A US District Court in New York has approved a request from Gautam Adani, the billionaire chairman of the Adani Group, to hold a hearing regarding his motion to dismiss a fraud case brought by the US Securities and Exchange Commission (SEC). Adani’s legal team contends that the SEC’s claims are not only flawed but also lack jurisdiction.
The Eastern District Court ordered that the parties involved schedule a pre-motion conference to discuss the anticipated motion for dismissal, following a plea submitted by Adani and his nephew, Sagar Adani. The court’s ruling recognizes the need for further legal arguments regarding the dismissal of the SEC’s complaint.
Legal Basis for Dismissal
In their filing, the lawyers for the Adani family argued that there is insufficient credible evidence to support the SEC’s allegations, including claims related to bribery. They stated that the SEC lacks the necessary jurisdiction over both Gautam and Sagar Adani and that the claims made within the complaint do not present actionable offenses under US securities laws.
The SEC’s case, which was initiated in November 2024, follows a criminal complaint from the US Department of Justice. The allegations assert that the Adanis engaged in a scheme to pay more than $250 million in bribes to Indian officials to secure contracts in the solar energy sector, while simultaneously concealing these actions from investors and banks in the United States.
Adani Group’s Stance on Allegations
The Adani Group has rejected all charges, asserting that no entities or executives from the group have been implicated under the US Foreign Corrupt Practices Act. The group’s renewable energy division, Adani Green Energy, which was involved in the fund-raising efforts, is not part of the ongoing proceedings. Gautam Adani leads the Adani Group, while Sagar Adani holds the position of executive director at Adani Green Energy.
Previously, these legal proceedings had faced delays spanning over a year, primarily due to the challenges in serving notices to the defendants located in India. Despite the ongoing legal issues, the Adani Group has continued its investment initiatives, raising funds from global investors, such as BlackRock, since the charges were filed.
Arguments Against US Jurisdiction
In their motions, the Adanis claimed that the court lacks personal jurisdiction over them, stating that neither individual had adequate connections to the United States or direct participation in the bond offering in question. The bond sale, worth $750 million, was executed outside the US, using exemptions under US securities regulations for non-US transactions.
They explained that Adani Green Energy conducted a bond offering in September 2021, which utilized SEC Rule 144A and Regulation S, regulations that allow private resales to qualified institutional buyers and exclude non-US sales from registration requirements. The Adanis emphasized that all transactions occurred outside US territory, and they argued that the SEC’s complaint fails to demonstrate any jurisdictional basis applicable to them.
Claims of No Investor Losses
The defendants took issue with the SEC’s claims, asserting that there have been no investor losses associated with the allegations. In fact, the bond obligations have been met, with all principal and interest payments fulfilled in full by 2024. Furthermore, they contested the bribery allegations, stating that there is no credible evidence to support the existence of a bribery scheme.
The filing highlights that the SEC has not indicated any involvement from US firms in the contestable solar energy projects in India, nor has it alleged that any US company participated in bidding or procurement related to such projects.
Conclusion and Next Steps
The Adanis are preparing to formally move for the dismissal of the SEC’s complaint by April 30, 2026. Their legal representatives have indicated willingness to attend a pre-motion conference as part of the procedural steps following the court’s order. Adani is represented by Sullivan & Cromwell LLP, while Sagar Adani’s legal counsel includes Nixon Peabody LLP and Hecker Fink LLP.
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Contents
Court Grants Hearing on Dismissal RequestA US District Court in New York has approved a request from Gautam Adani, the billionaire chairman of the Adani Group, to hold a hearing regarding his motion to dismiss a fraud case brought by the US Securities and Exchange Commission (SEC). Adani’s legal team contends that the SEC’s claims are not only flawed but also lack jurisdiction.The Eastern District Court ordered that the parties involved schedule a pre-motion conference to discuss the anticipated motion for dismissal, following a plea submitted by Adani and his nephew, Sagar Adani. The court’s ruling recognizes the need for further legal arguments regarding the dismissal of the SEC’s complaint.Legal Basis for DismissalIn their filing, the lawyers for the Adani family argued that there is insufficient credible evidence to support the SEC’s allegations, including claims related to bribery. They stated that the SEC lacks the necessary jurisdiction over both Gautam and Sagar Adani and that the claims made within the complaint do not present actionable offenses under US securities laws.The SEC’s case, which was initiated in November 2024, follows a criminal complaint from the US Department of Justice. The allegations assert that the Adanis engaged in a scheme to pay more than $250 million in bribes to Indian officials to secure contracts in the solar energy sector, while simultaneously concealing these actions from investors and banks in the United States.Adani Group’s Stance on AllegationsThe Adani Group has rejected all charges, asserting that no entities or executives from the group have been implicated under the US Foreign Corrupt Practices Act. The group’s renewable energy division, Adani Green Energy, which was involved in the fund-raising efforts, is not part of the ongoing proceedings. Gautam Adani leads the Adani Group, while Sagar Adani holds the position of executive director at Adani Green Energy.Previously, these legal proceedings had faced delays spanning over a year, primarily due to the challenges in serving notices to the defendants located in India. Despite the ongoing legal issues, the Adani Group has continued its investment initiatives, raising funds from global investors, such as BlackRock, since the charges were filed.Arguments Against US JurisdictionIn their motions, the Adanis claimed that the court lacks personal jurisdiction over them, stating that neither individual had adequate connections to the United States or direct participation in the bond offering in question. The bond sale, worth $750 million, was executed outside the US, using exemptions under US securities regulations for non-US transactions.They explained that Adani Green Energy conducted a bond offering in September 2021, which utilized SEC Rule 144A and Regulation S, regulations that allow private resales to qualified institutional buyers and exclude non-US sales from registration requirements. The Adanis emphasized that all transactions occurred outside US territory, and they argued that the SEC’s complaint fails to demonstrate any jurisdictional basis applicable to them.Claims of No Investor LossesThe defendants took issue with the SEC’s claims, asserting that there have been no investor losses associated with the allegations. In fact, the bond obligations have been met, with all principal and interest payments fulfilled in full by 2024. Furthermore, they contested the bribery allegations, stating that there is no credible evidence to support the existence of a bribery scheme.The filing highlights that the SEC has not indicated any involvement from US firms in the contestable solar energy projects in India, nor has it alleged that any US company participated in bidding or procurement related to such projects.Conclusion and Next StepsThe Adanis are preparing to formally move for the dismissal of the SEC’s complaint by April 30, 2026. Their legal representatives have indicated willingness to attend a pre-motion conference as part of the procedural steps following the court’s order. Adani is represented by Sullivan & Cromwell LLP, while Sagar Adani’s legal counsel includes Nixon Peabody LLP and Hecker Fink LLP.
