Gautam Adani, nephew summoned by United States securities commission in Rs 2,200 crore bribery case

The United States Securities and Exchange Commission has summoned Indian billionaire industrialist Gautam Adani, founder of the Adani Group, and his nephew Sagar Adani in connection with allegations that the conglomerate paid $265 million – Rs 2,200 crore – in bribes to secure solar energy contracts.

A copy of the summons is with Scroll.

The summons were sent to Gautam Adani’s Shantivan Farm residence and Sagar Adani’s Bodakdev home, both in Ahmedabad city, seeking their response in 21 days.

“Within 21 days after service of this summons on you (not counting the day you received it)…you must serve on the plaintiff (SEC) an answer to the attached complaint or a motion under Rule 12 of the Federal Rules of Civil Procedure,” a notice from the New York Eastern District Court dated November 21 read.

“If you fail to respond, judgment by default will be entered against you for the relief demanded in the complaint,” the summonses states. “You also must file your answer or motion with the court.”

The Securities and Exchance Commission and the US Department of Justice have alleged that 62-year-old Gautam Adani, Sagar Adani and others orchestrated bribes to Indian officials from 2020 to 2024 to win lucrative solar energy contracts. The contracts were reportedly expected to the net the conglomerate $2 billion in profits over 20 years.

Separate from the Securities and Exchange Commission complaint, an indictment document unsealed in a New York court names Adani, Sagar and Cyril Cabanes of Azure Power Global in what it describes as a “massive bribery scheme”.

The Adani Group has denied the accusations, calling them “baseless.”

The US indictment formally charges the Adanis and others and givess them notice to respond. Prosecutors claim the inquiry, initiated in 2022, faced obstruction and alleged that the Adani Group raised $2 billion from investors, including US firms, by misrepresenting anti-bribery compliance.

“As alleged, the defendants orchestrated an elaborate scheme to bribe Indian government officials to secure contracts worth billions of dollars and… lied about the bribery scheme as they sought to raise capital from US and international investors,” US Attorney Breon Peace said.

Indian agencies must probe bribery charges, petitioner tells SC

An application has been filed in the Supreme Court urging Indian agencies to investigate the bribery charges against Gautam Adani and others by the US authorities, reported LiveLaw.

Advocate Vishal Tiwari, the petitioner, has requested the court to consider the indictment order by the US Department of Justice and the charges filed by the Securities and Exchange Board. He described the allegations as significant enough to warrant a probe by Indian agencies in the “interest of the nation”.

The application is part of an ongoing case seeking an independent investigation into the claims of money-laundering and stock price manipulation levelled by American short-seller Hindenburg Research against the Adani Group last year.

Tiwari also noted that the Securities and Exchange Board of India has not yet completed its investigation into Adani Group companies despite a Supreme Court directive in January, in connection with Hindenburg Research’s allegations.

“The SEBI must inspire confidence by concluding its probe and disclosing its findings to restore investor trust,” the application said.

The US authorities have said that the alleged actions of Gautam Adani, Sagar Adani and others violated US laws including the Foreign Corrupt Practices Act and the Foreign Extortion Prevention Act.

The petitioner had previously requested the Securities and Exchange Board of India to expedite its investigation but the Supreme Court registry declined to register his plea, on the grounds that the court’s January order had not given any deadline for the board to complete the probe.

Also read: What does US law say about Adani’s indictment – and can he be charged in India?