Adani’s Big Decision in US SEC Fraud Case; Accepts Legal Notice, to Respond Within 90 Days

Gautam Adani, founder of the internationally prominent Adani Group, and his nephew Sagar Adani have agreed to accept legal notices in a civil fraud case filed by the United States Securities and Exchange Commission (SEC). They are now required to submit their response before a US court within 90 days. This development is being seen as a significant milestone in the legal process, as it clears the way for the matter to proceed toward judicial hearings.

The SEC had filed a civil fraud lawsuit against Gautam and Sagar Adani in November 2024 in the Brooklyn federal court in New York. The regulator alleged that the two had misled investors by providing false information and concealing a bribery-related scheme, thereby violating US securities laws.

The case had remained stalled for nearly 14 months because both accused individuals reside in India, which delayed the formal service of legal notices under US procedures. As a result, the SEC eventually sought permission to serve the notices through alternative means, including email, via the Adanis’ US-based legal representatives. The Adanis consented to this method, formally accepting the notices and enabling the case to move forward.

From the Indian side, certain technical objections had earlier been raised regarding the service of notice process. However, with the acceptance of the notices, those procedural hurdles have now been cleared. As per a joint filing, Gautam and Sagar Adani must file their response within 90 days. They may choose to seek dismissal of the case or present their legal defenses. Following this, the SEC will have up to 60 days to submit its reply, if required.

In addition to the civil case, the SEC has also referred the matter to federal prosecutors, leading to a separate criminal investigation involving allegations such as fraud and wire fraud. However, there have been no recent public updates regarding the progress of the criminal proceedings.

Adani Green Energy, the group’s renewable energy arm, has clarified that the company itself is not named as an accused in the case and that the SEC’s action is limited to the two individuals. The company has reiterated its commitment to strong governance standards, regulatory compliance, and transparency.

With the acceptance of the legal notices, the SEC case involving the Adani family is now set to enter the judicial phase. The outcome of this process is expected to have significant implications for global financial markets, investors, and India’s corporate landscape.