Billionaire Gautam Adani Moves To US Court For Dismissal Of SEC Fraud Case

Billionaire Gautam Adani has approached a US court seeking dismissal of a securities fraud case filed by the US Securities and Exchange Commission (SEC), arguing that it amounts to an improper application of US law beyond its borders and that the court lacks personal jurisdiction.

In November 2024, the SEC charged Gautam Adani and his nephew Sagar Adani, alleging they orchestrated a scheme to pay or promise hundreds of millions of dollars in bribes to Indian government officials to benefit Adani Green Energy, where both are executives and directors.

The case also centres on Adani Green’s alleged failure to disclose this in documents related to a $750 million bond offering in 2021.

The "No Jurisdiction" Defence

The Adani legal team has described the SEC’s case as “extraterritorial overreach,” arguing that the U.S. regulator is acting beyond its jurisdiction. Their defence rests on a few key points.

• First, the $750 million bond at the centre of the case was not listed on any U.S. exchange.

• Second, all alleged discussions and actions took place in India, involving Indian officials and an Indian company.

• Third, the bonds were repaid in full with interest by 2024, and the lawyers argue that no investor suffered any loss.

Alongside these legal arguments, the Adanis have denied the bribery allegations. Their filing says the SEC has no credible evidence to support its claims. They also maintain that Gautam Adani was not present at the board meetings where the bond documents were approved and, therefore, should not be held responsible for them.

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What Happens Next?

The SEC did not offer an immediate comment. Lawyers for the Adanis said they plan to file a formal motion to dismiss by 30 April.

Separately, US prosecutors had filed a related criminal case in November 2024 against the Adanis and other defendants. There have been no public updates in that case since December 2024, and a spokesperson for the US Attorney’s office in Brooklyn declined to comment.

Despite the cloud of legal drama, the Adani Group remains a powerhouse in India. Gautam Adani’s net worth currently sits around $60.6 billion.

If the New York judge agrees that the SEC has no jurisdiction, it would be a massive victory for the group, effectively ending the U.S. government's ability to interfere with their global business deals.

Sources:

CNBC TV18

The Week

Deccan Herald