Key points
- US regulator seeks summons for Adani
- Fraud, bribery allegations shake investor confidence
- India ministry declines serving US summons
MUMBAI: Shares of several Adani Group companies fell sharply after court filings revealed that the US Securities and Exchange Commission (SEC) is seeking permission to issue summons to conglomerate founder Gautam Adani in connection with alleged bribery and fraud.
According to CNBC, the SEC has approached a federal judge in Brooklyn to allow it to send legal summons to Gautam Adani and his nephew Sagar Adani, an executive director at Adani Green Energy, as part of an ongoing investigation into alleged violations of US securities laws.
Market reaction was swift. Shares of Adani Green Energy plunged nearly 14 percent, while flagship firm Adani Enterprises closed down 10.7 percent. Adani Power shares also fell, shedding about 5.7 percent during the session.
New York federal court
Gautam Adani, one of the world’s richest individuals, was indicted in a New York federal court in November 2024 along with seven other individuals over what prosecutors described as a massive bribery and fraud scheme.
US authorities allege that Adani Group executives misled American and international investors about the company’s adherence to anti-bribery and anti-corruption standards while raising more than $3 billion in capital.
Court filings said India’s Ministry of Law and Justice had twice declined to serve the summons under the Hague Convention, questioning the SEC’s authority to do so.
Prosecutors have accused Adani and others of paying more than $250 million in bribes to Indian officials to secure solar power contracts generating over $2 billion in profits.
