US SEC lawsuit against Gautam Adani paused amid federal government shutdown.
Adani, nephew Sagar Adani, and Vneet Jaain face fraud and bribery charges.
SEC claims Adani Group raised $175 million from US investors concealing misconduct.
Criminal proceedings continue, while the SEC suit awaits post-shutdown status update.
Amid the US federal government shutdown, a lawsuit by the US Securities and Exchange Commission (SEC) accusing Adani Group Chairman Gautam Adani of violating securities laws has been temporarily paused.
Back in November 2024, Adani was indicted by Brooklyn prosecutors, those who accused him of fraud and orchestrating a $250 million bribery scheme. Under the five-count criminal indictment, the names of his nephew, Sagar R Adani, and Vneet S Jaain, executives at Adani Green Energy Ltd., are also there, for allegedly violating federal laws.
On the other hand, a civil suit filed by the SEC alleges that Gautam and Sagar Adani made false and misleading statements about Adani Green Energy under US securities laws. According to a Bloomberg report, in a filing dated October 10, regulators said the SEC attorney handling the case was “unavailable to work on this matter” while on furlough during the government shutdown.
Additionally, US Magistrate Judge James Cho on Wednesday granted the SEC’s request and directed the government to file a status report within 30 days after the end of the shutdown.
However, the criminal proceedings have not been affected by the shutdown. In addition to that, none of the defendants or their lawyers have appeared at the court. Apart from Gautam, Sagar, and Jaain, five others have also been charged with conspiring to violate the US Foreign Corrupt Practices Act (FCPA) in connection with the alleged bribery scheme.
Meanwhile, the Adani Group has dismissed the US allegations as “baseless.” In June, Gautam Adani said, as quoted by Business Standard, “Despite all the noise, the facts are that no one from the Adani Group has been charged with violating the FCPA or conspiring to obstruct justice.”
According to the SEC and US prosecutors, in 2021 Adani and associates promised more than $250 million in bribes to Indian officials in order to secure solar energy contracts. Following that, the company raised investor funds in the US while concealing the misconduct. In addition to that, the SEC’s complaint claims that the group raised about $175 million from US investors during the scheme.
However, for Indian-based defendants, the SEC’s ability to serve legal summons relies on cooperation with India’s Ministry of Law and Justice under the Hague Service Convention. As of recent filings, the SEC says the summons have not yet been formally effected.
