Gautam Adani’s legal battle against U.S. regulators took a promising turn Friday when a New York court approved his push for a hearing to dismiss SEC allegations of massive bribery and investor fraud. The Eastern District Court’s order directs both sides to schedule a pre-motion conference, signaling openness to the Adani defense’s jurisdictional challenges.
At the heart of the dispute: SEC claims from November 2024 that Adani and nephew Sagar orchestrated over $250 million in bribes to Indian officials for solar contracts, hiding it from U.S. investors during Adani Green Energy’s fundraising. The parallel DOJ criminal complaint amplifies the stakes for the Adani empire.
But the Adanis fire back hard. Their attorneys argue the SEC’s case crumbles on multiple fronts—no jurisdiction, no actionable claims, no evidence. The group insists Adani Green, the bond issuer, isn’t even named in the suit, and no FCPA violations target its units or leaders.
Diving into the bond details, the $750 million offering in 2021 dodged U.S. registration via offshore exemptions. Sold to foreign underwriters and flipped to institutional buyers, it never hit American exchanges. Crucially, neither Adani personally greenlit it nor engaged U.S. markets directly.
Fast-forward to 2024: Bonds paid out in full, zero losses for holders. The SEC can’t point to harm, a petition notes, while the bribery plot—a pure India affair with no U.S. bidders or buyers—stretches U.S. law beyond limits.
Lawyers invoke Supreme Court rulings stressing ‘domestic’ elements for securities enforcement. Here, an Indian issuer, unregistered securities, foreign conduct—all scream extraterritorial overreach. ‘This case is squarely outside U.S. securities laws,’ they declare.
For Adani Group, synonymous with India’s infrastructure boom, this SEC salvo risked global reputational damage amid prior Hindenburg scrutiny. Dismissing it early could clear the path for business as usual. The pre-motion step keeps hope alive, potentially derailing a probe that could drag on for years.
