Adani Group Clarifies US SEC Subpoena Report; says no accusations against the company

Adani Group companies, including Adani Power, Adani Enterprises, Adani Ports and Adani Green Energy, issued a statement through an exchange filing on Saturday in response to recent media reports claiming that the US Securities and Exchange Commission (US SEC) is seeking court approval to serve legal summons on Adani Group Chairman Gautam Adani and his cousin Sagar Adani through alternative methods including direct email.In the documents, the Adani Group companies stated that no allegations have been made against the company, nor is the company a party to any such proceedings. The group also reiterated its previous clarification on November 21, 2024, addressing similar concerns following an earlier Bloomberg report on the same issue.

The group stated that the contents of the recent media report do not constitute disclosure requirements under SEBI regulations.“This relates to the article that appeared on “https://www.cnbctv18.com/” dated November 21, 2024, with the caption “Adani Group Shares in Focus: This is what the US SEC said”. In this regard, we understand that the US Department of Justice and the US Securities and Exchange Commission have filed a criminal complaint and a civil complaint, respectively, in the US District Court for the Eastern District of New York, against Shri Gautam Adani, as well as two other board members of Adani Green Energy Limited, the exchange filing said.

The media reports in question quote a Bloomberg article stating that the US SEC has approached a federal judge in Brooklyn, New York, to allow alternative means of subpoena, as previous requests through official diplomatic channels had been rejected by Indian authorities.

The regulator reportedly wants to ensure that both Gautam and Sagar Adani are informed of the legal action against them. The SEC told the court that India had rejected two previous requests for service of summons on procedural grounds and raised questions about the SEC’s authority under the Hague Convention.

The legal action traces back to an indictment unsealed in November 2024, in which the US Department of Justice and the US SEC accused Adani Group executives of participating in a scheme that bribed Indian officials to secure power purchase agreements through Adani Green Energy. The complaint further alleged that the executives misled U.S. investors by providing inaccurate information about anti-corruption practices. According to the documents, the SEC plans to deliver the subpoena directly to Adani executives via email after reportedly citing repeated failed attempts to do so through the Indian government.

In its November 2024 clarification, Adani Group had confirmed that the US proceedings were against certain individuals and that the company itself was not involved. It had also shared a press release at the time stating that no allegations had been made against the company in connection with the reported complaint.

Meanwhile, shares of Adani Group companies have come under pressure due to the resurgence of these legal developments. As of the last trading session, Adani Enterprises fell 10.7%, Adani Ports fell 7.5%, Adani Green Energy fell over 14% and Adani Power ended lower by 5.5%.

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