The U.S. Securities and Exchange Commission (SEC) has taken a crucial step forward in its civil fraud case against billionaire industrialist Gautam Adani, enabling the long-stalled legal proceedings to move ahead. The development comes after U.S.-based lawyers representing Adani and his nephew, Sagar Adani, agreed to accept the regulator’s legal papers, resolving a key procedural challenge that had delayed the case for months.

If approved by the federal court in Brooklyn, New York, the agreement will give the Adanis 90 days to formally respond to the SEC’s complaint, potentially setting the stage for motions seeking dismissal or other legal challenges.

Service Dispute Resolved, Court Decision Likely

In a filing made on Friday, the SEC and counsel for the Adanis informed the court that they had reached a mutual understanding on service of process. This eliminates the need for U.S. District Judge Nicholas Garaufis to decide how the defendants—both based in India—should be formally served with legal documents.

The service issue had emerged as a major obstacle in the case. Since Gautam and Sagar Adani reside outside the United States, the SEC had earlier reported difficulties in delivering the lawsuit under international legal procedures. The agreement by their U.S. lawyers to accept service now clears that hurdle, allowing the case to progress on its merits rather than procedural technicalities.

Allegations of Bribery and Securities Law Violations

The SEC charged Gautam Adani and Sagar Adani in November 2024 with violating U.S. securities laws. According to the regulator, the Adanis orchestrated a scheme involving the payment—or promises of payment—of hundreds of millions of dollars in bribes to Indian government officials.

The alleged objective of the scheme was to secure favorable treatment for Adani Green Energy Ltd, the renewable energy arm of the Adani Group, where both Gautam and Sagar Adani serve as executives and directors. The SEC claims that investors were misled while capital was raised in U.S. markets, bringing the alleged conduct under American securities law jurisdiction.

Parallel Criminal Case Adds to Legal Pressure

In addition to the civil action, U.S. prosecutors filed a criminal case in November 2024 against the Adanis and several other defendants. However, that case has seen no public developments for over a year, leaving its status uncertain.

The criminal case and the SEC’s civil lawsuit are separate proceedings, but they are closely linked in subject matter. While criminal cases require a higher burden of proof, the civil action could still result in significant penalties, injunctions, or restrictions on future access to U.S. capital markets if the SEC prevails.

Silence From Defence, Next Steps Awaited

Lawyers for both defendants declined to comment on the latest development. Robert Giuffra, representing Gautam Adani, and Sean Hecker, counsel for Sagar Adani, offered no public statements following the court filing.

If Judge Garaufis approves the service arrangement, the Adanis will have a 90-day window to respond to the SEC’s complaint. Their response could include motions to dismiss the case, arguments challenging U.S. jurisdiction, or detailed rebuttals of the allegations.

Credits: Reuters

High Stakes for Adani Group and Global Investors

Gautam Adani, 63, is the founder and chairman of the Adani Group, one of India’s largest conglomerates with interests spanning ports, energy, infrastructure, and logistics. According to Forbes, he is worth approximately $59 billion, making him India’s second-richest person.

The case is being closely watched by global investors, regulators, and policymakers, as it underscores the growing reach of U.S. regulators in policing alleged misconduct tied to international capital markets. For the Adani Group, the resolution of these legal challenges could have lasting implications for its global fundraising plans and corporate reputation.

With procedural barriers now cleared, the focus shifts squarely to the courtroom—and to whether the SEC can substantiate one of its most high-profile enforcement actions involving a foreign business leader.