US SEC seeks India’s help in Adani probe.
The US Securities and Exchange Commission (SEC) informed a New York district court on Wednesday that it has sought assistance from India’s law ministry to serve its complaint to the Ahmedabad-based Adani Group. The SEC stated that since the Adanis are primarily based in India, cooperation from Indian authorities is necessary to proceed with legal actions related to its $250 million bribery probe. The regulator’s request highlights the complexities of cross-border investigations involving multinational corporations. This development follows growing scrutiny of Adani Group’s business practices, with global regulators closely monitoring its financial dealings. The case could have significant implications for India-US legal cooperation in corporate governance and regulatory compliance.
US SEC Seeks India’s Assistance in $250 Million Adani Bribery Probe
BENGALURU: The US Securities and Exchange Commission (SEC) has formally requested assistance from the Indian government in its ongoing investigation into allegations that billionaire Gautam Adani and his nephew Sagar Adani paid more than $250 million in bribes to Indian government officials between 2020 and 2024 to secure lucrative solar-energy contracts.
The development comes as US authorities intensify their scrutiny of the Adani Group, a conglomerate that has been under global regulatory focus since short-seller Hindenburg Research accused it of stock manipulation and fraud in early 2023. While the group has consistently denied all allegations, the latest probe adds to its legal troubles, raising concerns over its governance and compliance practices.
US SEC Moves to Serve Legal Notice to Adani Group
On Wednesday, the SEC told a New York district court that because the Adanis are based in India, the regulator had sought assistance from India’s Ministry of Law and Justice to serve its complaint to the Ahmedabad-based business tycoon. The SEC’s latest legal move is part of its broader civil investigation into alleged financial misconduct at Adani Green Energy Ltd (AGEL), one of India’s largest renewable energy companies.
In a letter dated January 18, SEC counsel Christopher M. Colorado wrote:
Colorado further explained that under Article 5(a) of the Hague Service Convention, the SEC has specifically requested assistance from India’s Ministry of Law and Justice, the Central Authority for India under the convention.
Bribery Allegations and Criminal Investigation
The SEC’s civil probe runs parallel to a criminal investigation launched by the US Department of Justice (DoJ). On November 20, 2024, federal prosecutors in New York indicted eight individuals for allegedly orchestrating a scheme that involved paying more than $250 million in bribes to Indian government officials to obtain solar-energy contracts between 2020 and 2024.
According to the indictment, Adani Green Energy Ltd (AGEL) raised $2 billion from American and foreign investors by making false and misleading statements about the firm’s anti-corruption and anti-bribery efforts. The DoJ’s probe aims to determine the extent of fraudulent activities, while the SEC is focusing on potential violations of US securities laws.
Alongside Gautam Adani and Sagar Adani, the SEC’s civil investigation also targets Adani Green Energy’s CEO Vneet Jaain, alleging that the executives misled investors about the company’s commitment to corporate governance and regulatory compliance.
Adani Group Denies Allegations, Vows Legal Action
The Adani Group has categorically denied any wrongdoing, asserting that it remains fully compliant with all applicable laws and regulations.
“All possible legal recourse will be sought,” a spokesperson for the conglomerate said.
This is not the first time the Adani Group has come under scrutiny. In early 2023, Hindenburg Research accused the conglomerate of engaging in stock manipulation and accounting fraud, causing Adani’s market value to plummet by over $150 billion in a matter of weeks. Though the group denied the allegations and later recovered some of its losses, this latest probe by US authorities places fresh pressure on its global operations.
India’s Role in the Investigation
The US SEC’s reliance on India’s legal system to serve its complaint highlights the challenges involved in cross-border investigations into multinational corporations. Under the Hague Service Convention, India is expected to process legal requests from foreign authorities. However, given the political and economic significance of the Adani Group, it remains unclear how quickly the Indian government will respond to the SEC’s request.
Legal experts note that cooperation from Indian authorities could set a precedent for future international financial investigations.
“This case is not just about Adani; it’s about how global financial regulators hold multinational corporations accountable,” said Ravi Menon, a corporate law expert based in Mumbai.
“If India delays or refuses cooperation, it could strain diplomatic ties with the US. On the other hand, if it fully cooperates, it could lead to deeper scrutiny of Indian firms operating in international markets.”
What Happens Next?
With the SEC’s civil investigation and the DoJ’s criminal probe both underway, legal proceedings could take months, if not years, to unfold. The SEC will continue its attempts to serve legal notices to Adani executives, while the DoJ’s criminal case against individuals involved in the alleged bribery scheme will move forward in US courts.
Meanwhile, Adani Group’s investors and shareholders are watching closely as the controversy unfolds. While the company has attempted to reassure stakeholders about its commitment to compliance, ongoing investigations pose a serious reputational risk that could impact its ability to secure foreign investments in the future.
As the case develops, attention will also turn to how India responds to US legal authorities and whether this investigation will have broader implications for India’s corporate governance landscape.
For now, the Adani Group remains in the global spotlight, with its legal battles far from over.