The U.S. Securities and Exchange Commission (SEC) has officially sought assistance from Indian authorities in serving a legal complaint to Gautam Adani, the founder of the Adani Group, and his nephew, Sagar Adani. On February 18, 2025, the US SEC requested India’s help as part of its ongoing investigation into an alleged $265 million bribery scheme and securities fraud linked to Adani Green Energy. The case has sent shockwaves through financial markets and raised questions about corporate governance in one of India’s biggest conglomerates.
What is the Case About?
In November 2024, U.S. federal prosecutors unsealed an indictment accusing Gautam and Sagar Adani of bribing Indian officials to secure electricity purchase agreements for Adani Green Energy. The indictment further alleges that the Adani Group provided false information to U.S. investors about its anti-corruption policies, misleading them about the company’s compliance practices.
The SEC has since filed civil charges, claiming that the Adani Group raised substantial funds from U.S. investors while knowingly concealing its bribery activities, thereby violating U.S. securities laws.
How the U.S. is Pursuing the Case?
The SEC has approached India’s Ministry of Law and Justice, requesting official assistance in delivering legal notices to the Adanis. Since both individuals are in India and outside U.S. jurisdiction, the legal process must follow international diplomatic channels.
This move aligns with the protocols outlined in the 1965 Hague Convention and the Mutual Legal Assistance Treaty (MLAT) between India and the U.S. These treaties facilitate cross-border legal cooperation in criminal and financial investigations.
India’s Response: Legal or Political Matter?
India’s Ministry of External Affairs (MEA) has clarified that it was not informed in advance about the indictment. The MEA has stated that this remains a legal issue between private individuals and the U.S. Department of Justice. However, any formal request will be examined through proper legal channels.
The Indian government’s stance is crucial, as its cooperation (or lack thereof) could impact the case’s progress and global perception of India’s regulatory environment.
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What Does This Mean for Adani Group?
The allegations pose a major risk to Adani Group’s international reputation, investor confidence, and future expansion plans. If proven, the case could lead to heavy penalties, restrictions on Adani Green Energy’s access to U.S. markets, and increased scrutiny on the group’s business operations worldwide.
Final Thoughts: What’s Next?
The SEC’s investigation is still unfolding, and much will depend on India’s legal cooperation and the Adani Group’s defense strategy. With billions of dollars at stake, this case could shape the future of corporate accountability and global financial regulations.
