NEW DELHI — U.S. authorities are moving toward a possible resolution of fraud allegations against Adani Group Chairman Gautam Adani, potentially bringing an end to a case that has remained pending for more than a year, according to people familiar with the matter.
The U.S. Justice Department could announce the dropping of charges as early as this week, the people said. The Securities and Exchange Commission is also moving to settle a parallel civil fraud case it brought in November 2024 against Adani, his nephew Sagar Adani and others.
A Justice Department resolution could effectively end the criminal case while the defendants remain outside the United States. Any SEC settlement would likely involve a monetary penalty, according to people familiar with the discussions.
The SEC case, filed alongside a criminal complaint by the Justice Department, alleged that the Adanis sought to pay more than $250 million in bribes to Indian officials to secure solar energy contracts and concealed the alleged scheme from U.S. investors and banks while raising funds.
Attorneys for Gautam Adani and Sagar Adani have argued in court that there is no credible evidence supporting the alleged bribery scheme. They also said the SEC lacks jurisdiction over the two men and that the alleged misstatements at the center of the case are not actionable under U.S. securities laws.
Adani Group has denied the allegations. The company has said none of its entities or executives has been charged under the U.S. Foreign Corrupt Practices Act and that Adani Green Energy, the renewable energy arm that raised the funds, is not a party to the proceedings.
Last month, a U.S. judge granted Gautam Adani’s request to schedule a hearing on a motion to dismiss the SEC case. The motion argues that the case represents an improper extraterritorial application of U.S. law and that the SEC has failed to establish actionable claims under federal securities statutes.
In court filings, Adani’s legal team said the case lacks a sufficient jurisdictional basis. The filings also argue that the SEC’s claims tied to a 2021 bond sale by Adani Green Energy are flawed on several grounds.
The $750 million bond sale was conducted outside the United States under Rule 144A and Regulation S exemptions, with securities sold to non-U.S. underwriters and later resold in part to qualified institutional buyers, according to the defense filing.
The Adanis also argued that the SEC lacks personal jurisdiction, saying neither Gautam Adani nor Sagar Adani had sufficient U.S. contacts or direct involvement in the bond offering. Their attorneys said the complaint does not allege that Gautam Adani approved the issuance, attended key meetings or directed any activity at U.S. investors.
The filing further contends that the SEC does not allege investor losses. It said the bonds have matured and that Adani Green repaid all principal and interest to investors in 2024.
The defense also argued that the SEC’s case is impermissibly extraterritorial because the securities were not listed in the United States, the issuer is Indian and the alleged misconduct occurred entirely in India. (Source: IANS)
