Latest Developments in the Adani Case
Civil, Criminal Cases against Gautam Adani: New York Court Order
Indian billionaire Gautam Adani is facing indictment by the U.S. Department of Justice for his alleged involvement in a years-long scheme to pay over $250 million in bribes to Indian officials in exchange for favorable solar energy contracts. A New York court has ruled that the criminal and civil cases filed against Adani and others in this bribery scheme are related and will be assigned to the judge overseeing the criminal case.
The order, available on the website of the U.S. District Court Eastern District of New York, states that in consultation with District Judge Nicholas Garaufis, the cases USA v. Adani et al., 24 Crim. 433 (NGG), Securities and Exchange Commission v. Adani et al., 24 Civ. 8080 (VMS), and Securities and Exchange Commission v. Cabanes, 24 Civ. 8081 (VMS) are based on similar allegations and arise from the same transactions or events. To promote judicial efficiency and avoid conflicting schedules, all three cases are marked as related and will be assigned to the judge handling the earliest filed action, which is the criminal case, USA v. Adani et al., 24 Crim. 433 (NGG). The order was issued by Magistrate Judge Vera M. Scanlon on December 12, 2024, and the case has now been reassigned to United States District Judge Nicholas Garaufis.
Adani Group Denies Allegations
The Adani Group has vehemently denied the allegations made by the U.S. Department of Justice and the Securities and Exchange Commission (SEC) as “baseless.” In a statement, a spokesperson for the Adani Group said, “The allegations made by the U.S. Department of Justice and the U.S. Securities and Exchange Commission against the directors of Adani Green are baseless and denied.” The spokesperson also referenced a statement from the U.S. Department of Justice: “The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.”
The Adani Group has stated that it will pursue all possible legal recourse. The group has always upheld and remains 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 organization, fully compliant with all laws,” the spokesperson added.
SEC Charges and Criminal Indictment
In November 2024, the SEC charged Gautam Adani, Sagar Adani, and Cyril Cabanes, an executive of Azure Power Global Ltd., with conduct arising from a massive bribery scheme. In a parallel action, the U.S. Attorney’s Office for the Eastern District of New York unsealed criminal charges against Gautam Sagar Adani, Cabanes, and other individuals connected to Adani Green and Azure Power.
The criminal indictment charges Gautam Adani, Sagar Adani, and Vneet S. Jaain with conspiracies to commit securities and wire fraud, as well as substantive securities fraud, for their roles in a multi-billion-dollar scheme to obtain funds from U.S. investors and global financial institutions based on false and misleading statements. The indictment also charges Ranjit Gupta and Rupesh Agarwal, former executives of a renewable-energy company with securities traded on the New York Stock Exchange, and Cyril Cabanes, Saurabh Agarwal, and Deepak Malhotra, former employees of a Canadian institutional investor, with conspiracy to violate the Foreign Corrupt Practices Act in connection with a bribery scheme involving one of the world’s largest solar energy projects.
Gautam Adani U.S. Indictment: How are Summons Issued under the Hague Convention?
The U.S. Securities and Exchange Commission (SEC) has requested assistance from India’s Ministry of Law and Justice, the central authority for India under the Hague Service Convention, to serve a summons on Gautam Adani and his associates. On February 18, 2025, the SEC informed a New York court that it has sought help from the Indian government under the Hague Service Convention—formally known as the Convention on the Service Abroad of Judicial and Extrajudicial Documents in Civil or Commercial Matters of 1965—to serve a summons on billionaire Gautam Adani and his nephew, Sagar Adani, regarding alleged securities fraud and a $265 million bribery scheme.
The SEC invoked Article 5(a) of the Convention to request India’s Ministry of Law and Justice to facilitate the service of the summons on the defendants. Additionally, the SEC is exploring alternative service methods allowed under Rule 4(f) of the Federal Rules of Civil Procedure, which govern civil litigation in U.S. federal courts.
India’s Response to the Summons
India’s Union law ministry has directed a district court in Ahmedabad to formally serve the summons issued by the SEC to billionaire Gautam Adani, concerning alleged securities fraud and a $265 million bribery scheme, as outlined in a letter dated February 25, 2025. Under the Hague Service Convention, the summons cannot be directly served to individuals in India without judicial cooperation. Indian legal experts note that compliance would require Adani or his legal representatives to respond to the U.S. court proceedings. Adani and the Law Ministry have not yet commented publicly. The conglomerate has previously dismissed the allegations as baseless and pledged to pursue all available legal remedies. According to a lawyer, the summons does not carry an extradition risk for the businessman. “Extradition becomes relevant only if a U.S. court issues an arrest warrant,” explained Malak Bhatt, founding partner at NM Law Chambers. However, Arshdeep Khurana, a criminal lawyer in India, stated, “The summons appears to be for appearance in a court in New York. If it is served through the Indian court, the respondents will be required to appear.”
Environmental Law Challenges in India
Indian billionaire Gautam Adani’s group is currently battling allegations in court that its planned multibillion-dollar power plant and a luxury housing complex violate environmental laws, adding to its many legal challenges. Such allegations have often troubled Adani’s projects in India and abroad. In Australia, the group faced a seven-year activist campaign against its Carmichael coal mine, and construction at its seaport in south India was halted for months in 2022 due to protests over coastal erosion.
Now, Adani Group is defending itself against allegations made in India’s National Green Tribunal that it started work on a $2 billion power plant without waiting for environmental clearance. The lawsuit by an activist claims that the site for the plant is within a forest in the Mirzapur district of Uttar Pradesh. The suit seeks to halt the project, stating it would devastate the area and impact wildlife. Adani denied these claims in a March 6 filing, asserting, “The project land is not forest land.” State pollution control official Reetesh Kumar Tewari confirmed that Adani stopped work at the site after receiving a warning notice in November 2022.
Legal cases in India can drag on for years, and environment-related challenges often emerge as a sticking point for large companies. The latest legal tussles come just as India’s government has asked a local court to deliver a summons from the SEC to group founder Gautam Adani over his alleged role in a $265 million bribery scheme. Adani has denied these allegations and said they are baseless.
Other Cases against Adani in India
Gautam Adani and his brother Rajesh received court relief in a Rs 388 crore cheating case. The Bombay High Court discharged Gautam Adani, chairman of Adani Enterprises Limited (AEL), and managing director Rajesh Adani from a Serious Fraud Investigation Office (SFIO) case concerning alleged manipulation of AEL’s share prices. Justice Rajesh N Laddha quashed a sessions court order that had refused to clear the Adanis and AEL from the long-standing case, which accused them of market regulation violations amounting to Rs 388 crore. The high court’s ruling came after the Adanis and AEL challenged the sessions court’s decision, with their appeals argued by senior advocates Amit Desai and Vikram Nankani, who maintained that there was no basis to continue proceedings against them.
How are Adani’s Companies Reacting in the Stock Market?
Adani stocks have plummeted up to 48% in FY25 so far, with Rs 3.4 lakh crore in market capitalization wiped out. The combined market capitalization of Adani Group stocks has declined by 21%, or Rs 3.4 lakh crore, in FY25 YoY, experiencing a turbulent year as investors turned cautious amid broader market volatility and regulatory concerns. Shares of Adani Green Energy have been the hardest hit, with nearly half of their market capitalization wiped out this year, followed by Adani Enterprises. As of Friday, March 21, 2024, the total market capitalization of Adani Green Energy stood at Rs 1.46 lakh crore, down from Rs 2.90 lakh crore on March 28, 2023, the last trading day of FY23.
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