Shares of several Adani Group companies fell sharply on Friday after new court filings showed the US Securities and Exchange Commission (SEC) is seeking to send legal summons to founder Gautam Adani and his nephew Sagar Adani over allegations of bribery and fraud.
The disclosures revived investor focus on a high-profile US case tied to Adani Group’s fundraising activity and claims about its compliance controls.
The developments also highlighted ongoing legal hurdles for US regulators, after India’s Ministry of Law and Justice previously declined to deliver the summons under international rules.
Stocks fall as filings revive legal pressure
Adani Group shares dropped between 5% and 14% on Friday as the filings pointed to the SEC’s next steps in pursuing the case.
Adani Green Energy ended the session nearly 14% lower, while Adani Enterprises closed 10.7% lower. Adani Power fell 5.7%.
The SEC has approached a US District Judge in Brooklyn, Nicholas Garaufis, asking for permission to issue a legal summons to Gautam Adani and Sagar Adani, who is an executive director of Adani Green Energy.
US indictment puts bribery and fraud claims back in focus
Gautam Adani, chair of India’s Adani Group and one of the world’s richest people, was indicted with seven other men in New York federal court in November 2024.
The case centres on charges connected to what prosecutors described as a major bribery and fraud scheme.
The allegations involve the way Adani Group executives presented their compliance practices to investors while raising funds linked to energy contracts.
According to the charges, the executives misled US and international investors about their company’s compliance with anti-bribery and anti-corruption rules.
The filings stated that more than $3 billion in capital was raised to fund those energy contracts.
Summons delivery blocked twice under Hague Convention
The latest filing also pointed to complications in serving the summons, which is required to move the SEC’s civil process forward.
The SEC told the court that India’s Ministry of Law and Justice refused twice last year to deliver the summons to Gautam Adani and Sagar Adani under the Hague Convention.
In its submission, the SEC said the Ministry appeared to argue that the regulator did not have the authority to invoke the Hague Convention or request service of the summons through that mechanism.
This procedural barrier may shape how quickly the case develops, as regulators typically rely on formal international processes to deliver legal documents in cross-border matters.
Alleged bribes tied to solar contracts and investor funding
At the centre of the allegations is an accusation that Adani and several other defendants paid more than $250 million in bribes to Indian government officials.
The claimed purpose was to secure solar energy supply contracts that were expected to generate more than $2 billion in profits.
The SEC’s court filings connected these claims to how the group sought to raise capital from investors, particularly in the US and other international markets, while describing its compliance posture.
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