New Delhi: Indian Businessman Gautam Adani and his nephew Sagar Adani have settled to take a legal notice by the United States Securities and Exchange Commission (SEC) in a civil fraud lawsuit. This case is under trial in one of Brooklyn, New York, federal courts. Both Gautam and Sagar Adani will be allowed 90 days after accepting the notice to provide their response to the court.
This case is an issue that has been debated over many months. The civil case was filed with SEC in November 2024. It charged Gautam Adani and Sagar Adani with providing incorrect or deceptive information to United States investors. The case is associated with Adani Green Energy Limited (AGEL) and certain so-called bribery-related issues associated with solar power projects in India.
The case had been stifled in the year over a year. This was chiefly because the SEC could not physically make the legal notice to Gautam and Sagar Adani in India. The international law suggests that U.S. authorities should use a due process of the law serving the court documents in another state. This is a time consuming process which requires the intervention of government departments.
The SEC attempted various means to give notice, such as official diplomatic means. These attempts however failed. Due to this delay, the case was pending on a lower level.
Lawyers of Gautam and Sagar Adani have now accepted the notice on their behalf. This move will eliminate the legal hurdle and will enable the case to proceed. After such an agreement has been sanctioned by the court, the time to respond will actually commence.
Gautam Adani, Next in the Case
After the court’s approval:
Sagar Adani and Gautam Adani will be given 90 days to provide their response. Then the SEC can have 60 days to reply. The Adanis can also have an additional 45 days in case they would like to respond.
This is a common occurrence in the United States civil cases. The Adanis are also given a chance during this period to dispute the case, request that the case be thrown out or provide a detailed narration of his side.
What Are the Allegations?
The SEC asserts that the two businessmen deceived U.S. investors by withholding or not exposing fully, the information regarding the so-called bribery-related problems associated with the business activities of Adani Green. Unrelated investigations by the U.S. authorities are also stated in the case in regard to a huge amount of bribery regarding solar power contracts.
It is worth pointing out, though, that this SEC case is a civil, rather than a criminal case. It has to do with protection of the investors and with the rules of the market, not with direct criminal punishment.
Company’s Stand
Adani Green Energy Limited has already indicated clearly that it is not the company that is in this case. This firm also indicated that it is not charged with any charges. The company states that Gautam Adani and Sagar Adani have not been accused of any anti-bribery act in the United States.
The Adani Group has insisted that it would undergo all legal procedures and take its case to court.
Legal Team and Defence
To protect themselves in this case, Gautam and Sagar Adani employed a senior and reputable U.S. attorney. Although they have taken the legal notice, they have not taken the allegations. They have opined that they will resort to every legal means that they can have at their disposal, to this extent that they may even question the authority of the U.S court of hearing this case.
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