Adani bribery case: US SEC has no jurisdiction to summon foreigners, says report

The US SEC, which served notices to Gautam Adaniand his nephew Sagar Adani, will have to serve the summons through proper diplomatic channels as it has no jurisdiction to summon a foreign national directly, news agencyPTI reported citing sources.

The SEC seeks clarification from Adanis regarding allegations of bribery to secure profitable solar power contracts. However, two sources familiar with the matter told PTI that the request will have to follow the established protocol, including routing it through the Indian Embassy in the United States and complying with other diplomatic formalities.

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Earlier PTI reported that Gautam Adani, chairman of the Adani Group, and his nephew Sagar Adani have been summoned to address allegations by the US Securities and Exchange Commission (SEC) accusing them of paying $265 million (Rs 2,200 crore) in bribes to state government officials in India to secure solar power contracts.

Summons were delivered to their Ahmedabad residences, requiring a response within 21 days, PTI reported, citing a notice issued on November 21 by the New York Eastern District Court. The notice warns that if the Adanis fail to respond in time, a default judgment will be issued against them.

"Within 21 days after service of this summons on you (not counting the day you received it)... you must serve on the plaintiff (SEC) an answer to the attached complaint or a motion under Rule 12 of the Federal Rules of Civil Procedure," said the US SEC notice of November 21 notice being set through New York Eastern District Court.

It adds, “If you fail to respond, judgment by default will be entered against you for the relief demanded in the complaint. You also must file your answer or motion with the court.”

As per the allegations levelled against Gautam Adani, 62, and seven others, including his nephew Sagar Adani, a director at Adani Green Energy Ltd., they paid $265 million in bribes to Indian government officials between 2020 and 2024 to secure solar energy contracts. The contracts were expected to yield $2 billion in profits over 20 years, as per an indictment unsealed in a New York court.

In addition to the US Department of Justice indictment, the SEC has also charged Gautam Adani, Sagar Adani, and Cyril Cabanes, an executive at Azure Power Global, for their roles in what it described as a “conduct arising out of a massive bribery scheme.”

The Adani Group has rejected all allegations and said it will pursue legal options. In a statement, the group said, “The Adani Group has always upheld and is steadfastly committed to maintaining the highest standards of governance, transparency, and regulatory compliance across all jurisdictions of its operations. We assure our stakeholders, partners, and employees that we are a law-abiding organisation fully compliant with all laws."

(With inputs from agencies)