Adani agrees to receive notice in US SEC fraud case

New York/New Delhi: Billionaire Gautam Adani and his nephew, Sagar Adani, have agreed to receive a legal notice from US Securities and Exchange Commission in a civil fraud lawsuit alleging they misled investors about a bribery scheme, according to a court filing. The stipulation is subject to court approval, reports PTI.In a filing in a federal court in Brooklyn, SEC and US-based lawyers for Gautam and Sagar Adani said lawyers had agreed to accept service of the regulator’s legal papers, removing the need for a judge to rule on how defendants should be served. The joint application has been submitted for approval from the court concerned. This is a standard procedural step in US legal proceedings.SEC case against Adanis: Judge to weigh joint pleaIf agreed by the judge, the joint application will allow the SEC matter to progress while giving time to the Adanis to either file their motion to dismiss or their defence within 90 days. The SEC thereafter can file their opposition within a further period of 60 days. The defendants can file their replies to such opposition within 45 days.The SEC had filed a lawsuit in Nov 2024 alleging that the two violated US securities laws by making false and misleading representations about Adani Green Energy Ltd (AGEL). In addition to the SEC’s civil complaint, federal prosecutors in Brooklyn have charged the Adanis and others with allegedly helping to drive a $265 million bribery scheme in India to secure solar power contracts. The Adani Group has repeatedly denied all accusations made against it or the founder family.Both lawsuits have been stalled for more than a year as both Adanis remain in India and couldn’t be served the notices. Last week, SEC asked a US judge to allow alternative methods to notify them of the suit, including service by email and through other US law firms representing the Adanis.AGEL said the defendants — Gautam and Sagar Adani — agreeing to accept the notice is a procedural step and they would seek dismissal of the SEC’s complaint or file responsive pleadings. “We understand that on Jan 30, 2026, counsel for defendants filed an application agreeing to accept service on behalf of the defendants without accepting the jurisdiction of the Eastern District of New York and reserving all defences the defendants may raise, including as to jurisdiction,” it said.AGEL went on to cite its previous statement that the Gautam Adani and Sagar Adani who are directors on its board, have not been “charged with violation/(s) of the United States Foreign Corrupt Practices Act i.e. there are no charges of bribery or corruption against the defendants.” Also, the “company is not a party to these proceedings, and no charges have been brought against it,” it said. PTI