Adani SEC Fraud Case to Proceed After Legal Hurdle Cleared

Introduction

A significant procedural hurdle in the United States Securities and Exchange Commission's (SEC) civil fraud case against Indian billionaire Gautam Adani and his nephew, Sagar Adani, has been resolved. According to a court filing on Friday, January 30, 2026, US-based lawyers for the Adanis have agreed to accept the service of legal papers, allowing the long-stalled case to move forward in a Brooklyn federal court.

The Core Allegations

The case originates from charges filed by the SEC in November 2024. The regulator accused Gautam and Sagar Adani, both executives at Adani Green Energy, of orchestrating a large-scale bribery scheme. The complaint alleges that they paid or promised to pay hundreds of millions of dollars to Indian government officials to secure favorable energy contracts for the company.

According to the SEC, this conduct was directly at odds with disclosures made to investors during a September 2021 bond offering. Adani Green Energy raised $150 million in that offering, with approximately $175 million coming from US-based investors. The offering documents allegedly contained materially false and misleading statements, claiming the company adhered to strict anti-corruption and anti-bribery policies while the alleged scheme was underway.

A Protracted Procedural Standoff

The SEC's case had been stalled for over a year due to difficulties in formally serving the legal summons to the Adanis, who reside in India. The standard process for serving legal documents internationally is governed by the Hague Convention. However, the SEC reported to the court that its attempts through this channel were repeatedly blocked.

India's Ministry of Law and Justice, the designated authority for such requests, rejected the SEC's summons on two separate occasions. The first rejection in early 2025 cited procedural issues like missing signatures and seals, which the SEC argued were not required. A second rejection in December 2025 went further, with the ministry questioning the SEC's authority to issue the summons in the first place. This diplomatic and legal impasse effectively halted the case, preventing it from proceeding.

The Breakthrough and Next Steps

The recent agreement marks a pivotal moment. By having their US lawyers accept the legal papers, the need for a ruling from US District Judge Nicholas Garaufis on how to serve the defendants has been eliminated. If the judge approves this resolution, a clear timeline will be established. The Adanis will have 90 days to formally respond to the SEC's complaint. Their response could include motions to have the case dismissed.

This development allows the civil lawsuit to advance toward discovery and potential trial. It is important to note that US prosecutors also filed a related criminal case against the Adanis and other defendants in November 2024. However, there have been no public developments in that criminal case for more than a year.

Market Impact of the Legal Battle

The uncertainty surrounding the SEC's attempts to serve the summons had a tangible impact on the market. When news of the procedural deadlock and the SEC's request to use alternative service methods became public around January 23, 2026, Adani Group stocks experienced a significant selloff, wiping out an estimated $12.5 billion in market capitalization in a single day.

Adani Group's Official Position

Throughout the process, the Adani Group has maintained that the allegations are 'baseless'. The conglomerate and its listed entities have issued several clarifications to stock exchanges. They emphasize that the US legal proceedings are directed at individual executives and not the companies themselves. Adani Green Energy stated that it is not a party to the case, no charges have been brought against the company, and its business operations remain unaffected by these developments.

Conclusion

With the procedural issue of serving legal papers now resolved, the focus of the US SEC's civil fraud case against Gautam and Sagar Adani shifts to the substance of the allegations. The upcoming legal response from the Adanis will be the next key event as the case finally proceeds in the US court system. The resolution brings an end to a period of uncertainty that had weighed on investor sentiment, but the core legal challenge is only just beginning.