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Adani Challenges SEC Case, Denies Bribery Allegations

Lawyers argue US regulator lacks jurisdiction over bond transactions. Lawyers representing Gautam Adani and his nephew Sagar Adani have moved a New York federal court seeking dismissal of a securities fraud case filed by the U.S. Securities and Exchange Commission (SEC). The legal team has contested both the allegations and the regulator’s authority to pursue the case.

The SEC has accused the Adani executives and others of allegedly paying substantial bribes to Indian officials to secure favourable power supply contracts for Adani Green Energy Limited. It further alleged that while raising funds from US investors, the company failed to disclose these alleged payments, thereby misleading investors and violating securities laws. The Adani Group has firmly denied all allegations of wrongdoing.

In their defence, the lawyers argued that the SEC does not have personal jurisdiction in the matter. They stated that the Adani family members are not US residents and did not specifically direct any activities toward the United States. According to the filing, Gautam Adani neither authorised the issuance of the $750 million bond offering in question nor directly oversaw its sale to US investors.

The defence also maintained that although Sagar Adani was part of internal management discussions, he did not play any role in directing bond sales in the US. The bonds, they said, were initially sold to non-US underwriters, who later resold a portion to American investors in secondary transactions—transactions in which the company itself had no involvement.

Another key argument raised was that only a portion of the total bond issuance—around $175 million—eventually reached US investors, and that too through secondary market trades. This, the lawyers contended, is insufficient to establish jurisdiction for the SEC, particularly since the securities were neither registered in the US nor traded on American exchanges. They further emphasized that the alleged conduct took place entirely in India and was governed by non-US agreements.

The defence also dismissed claims related to environmental, social, and governance (ESG) disclosures and anti-bribery commitments, calling them broad, generic statements that do not amount to legally enforceable guarantees. Such statements, they argued, have historically been treated by courts as non-actionable corporate assertions.

For legal representation, Gautam Adani has engaged Sullivan & Cromwell LLP, with Robert Giuffra leading his defence. Giuffra is known for representing high-profile clients, including Donald Trump and Volkswagen in major legal matters. Meanwhile, Sagar Adani is being represented by attorneys from Nixon Peabody LLP and Hecker Fink LLP.

The court has accepted the motion for consideration and will hold further proceedings to determine whether the case should be dismissed or proceed to trial.