Adani SEC fraud case: judge grants hearing in 2025

What the US court has allowed

A US judge has granted Gautam Adani a hearing to argue for dismissal of a US Securities and Exchange Commission (SEC) fraud case linked to an alleged bribery scheme in solar energy contracts. The hearing gives Adani an opportunity to challenge the case at an early stage and potentially avoid a prolonged legal fight. Adani and his nephew had sought dismissal, arguing that the SEC’s case suffers from jurisdictional and factual weaknesses. The SEC action was filed alongside a criminal complaint by the US Department of Justice (DOJ). US authorities allege the matter involved misleading US investors and banks, as well as a bribery plan connected to solar contracts.

Adani’s core arguments against the SEC

Adani has denied the allegations and said the claims are baseless. He has argued the US lacks jurisdiction over the transactions at issue. He has also contended that the SEC has not established credible evidence of wrongdoing. A key part of the defence, as stated, is that investor losses are absent because all bonds were repaid. Adani’s submission challenges the SEC’s ability to show harm to investors in the way the regulator alleges. The hearing now becomes the forum where these objections will be tested.

What the SEC and DOJ allege

The SEC and DOJ matters centre on allegations that Adani conspired to offer more than USD 25 crore in bribes to secure solar energy contracts. The DOJ unsealed a five-count indictment in November 2024 in the Eastern District of New York, charging eight defendants. Those charged include Gautam S. Adani, Sagar R. Adani, and Vneet S. Jaain, described as executives of the Adani Group. US prosecutors allege conspiracies to commit securities and wire fraud, along with substantive securities fraud, tied to a multi-billion-dollar scheme to obtain funds from US investors and global financial institutions on the basis of false and misleading statements.

Who is named in the wider case

The indictment describes the Adani Group as an Indian conglomerate and refers to its subsidiary Adani Green Energy Ltd as an Indian renewable energy company. It also names executives at Azure Power Global Ltd, including Ranjit Gupta, Cyril Cabanes, Deepak Malhotra, and Rupesh Agarwal. It further mentions Saurabh Agarwal, an employee of Caisse de depot et placement du Quebec (CDPQ), described as Azure’s largest stockholder. The indictment alleges the defendants executed a scheme to bribe Indian government officials to secure contracts worth billions of dollars. It also alleges Adani and others lied about the bribery scheme while raising capital from US and international investors.

Contract timeline and profit claims in the indictment

According to the DOJ, the alleged bribery conduct took place between approximately 2020 and 2024. The indictment alleges agreements to pay more than USD 25 crore in bribes to Indian government officials to obtain lucrative solar energy supply contracts projected to generate more than USD 200 crore in profits. It also alleges in-person meetings, messaging communications, and steps taken to conceal the alleged bribery from investors and financial institutions. Prosecutors further allege the defendants sought billions of dollars in financing, including to fund solar supply contracts procured through bribery. Separately, a Reuters-style newsfeed excerpt in the text references accusations of orchestrating a USD 26.5 crore bribery scheme and raising about USD 300 crore in loans and bonds, including USD 17.5 crore from American investors.

Azure Power’s US settlement and what it covers

Azure Power, a solar energy company whose shares were listed for US trading on the NY Stock Exchange, said it paid USD 2.3 crore to settle a case in a US district court over bribery and other irregularities. The company said the resolution will enable it to move forward. A New York district court indictment charged the company and former executives Ranjit Gupta, Murali Subramanian, and Pawan Kumar Agrawal with misrepresenting data and allegedly paying bribes to win new projects. The allegations include “false and misleading” statements on compliance with anti-corruption and anti-bribery laws, and claimed investors bought Azure equity at “artificially inflated prices” due to misrepresentation and omissions.

Settlement approvals and investor class period

Azure said that on April 11, 2025, the company and the court-appointed lead plaintiff agreed, subject to court approval, to a full and final settlement without any admission of liability by any defendant. The settlement received preliminary approval on April 30, 2025, and later received final approval, according to the company statement. Azure also stated that, as a result of materially false and or misleading statements and or failures to disclose, its equity shares traded at artificially inflated levels, and later disclosures negatively affected the value. The settlement money is to be distributed among those who suffered losses on purchases of Azure equity shares between January 1, 2020, and November 20, 2024.

SECI tender design and allegations around auctions

A separate investigative account in the text says the Union government designed a solar power auction that discouraged competition and helped Adani Group secure contracts for assured purchases over 25 years. It describes SECI as an intermediary buying power through auctions and selling it to states for a commission, with the power ministry setting broad guidelines and the renewable energy ministry and SECI having flexibility in auction details. The account says a manufacturing-linked auction structure was used and that SECI offered to buy 6 GW of solar power from firms that would set up solar equipment manufacturing linked to up to 2 GW of power. It also cites criticism from Vikram Solar Limited, which argued manufacturing requires high equity and low lending while generation focuses on low equity and high lending.

Bid outcomes, tariffs, and later revisions

The text says three bids came in: Adani Group, Azure group, and Navayuga Group. Navayuga bid Rs 2.93 per kWh, while Adani bid Rs 2.92 per kWh shortly after Azure bid at the same Rs 2.92 per kWh. It also states that SECI offered additional capacity without fresh bidding, Azure and Navayuga did not take it, and Adani obtained additional capacity. The account says Adani ultimately received a commitment for 8 GW after originally bidding for 4 GW, while Azure received 4 GW after bidding for 2 GW. More than a year and a half after Letters of Award at Rs 2.92 per kWh, the companies reduced tariffs to Rs 2.54 and Rs 2.42 per kWh, indicating, as written, that the earlier tariff was unsustainable.

Key figures and dates at a glance

Market and investor context mentioned in the text

The text also cites fallout that included a USD 60 crore bond cancellation by the Adani Group and an initial USD 5,500 crore erosion in market value. It adds that some international investors re-evaluated exposure following the indictment. Another part notes that a large Canadian pension fund, CDPQ, is under scrutiny in connection with alleged involvement of former executives and that those employees were terminated in 2023, with CDPQ co-operating with authorities. It also states that AGEL clarified that Adani, Sagar Adani, and Vneet S. Jaain were not charged with bribery under the US Foreign Corrupt Practices Act, and that the group denied any FCPA violations.

What happens next

The court hearing will test Adani’s attempt to dismiss the SEC case on jurisdictional and evidentiary grounds. The SEC, for its part, alleges misconduct that affected US investors and banks, while Adani argues the transactions do not fall under US jurisdiction and that investor losses have not been shown. In parallel, Azure Power’s settlement brings closure to a separate investor case tied to its disclosures and alleged irregularities, without an admission of liability as stated by the company. The next concrete development in Adani’s matter will be the outcome of the permitted hearing and any subsequent court orders.