Adani Stocks Plunge Up to 13% as US SEC Seeks to Email Summons

Introduction

Adani Group stocks experienced a sharp decline, with some falling by as much as 13% on Friday, January 23, 2026. The broad-based sell-off was triggered by reports that the U.S. Securities and Exchange Commission (SEC) has requested permission from a U.S. court to directly serve summons via email to billionaire Gautam Adani and his nephew, Sagar Adani. This action is a significant development in an ongoing investigation into alleged fraud and a $165 million bribery scheme involving the Indian conglomerate, raising fresh concerns among investors.

The SEC's Unconventional Legal Step

The SEC's filing in a Brooklyn, New York court highlights its persistence in pursuing the case despite procedural challenges. The U.S. market regulator informed the court that its previous attempts to deliver the summons through official channels were unsuccessful. According to the filing, India's authorities had rejected two formal requests to serve the legal documents. Citing these rejections, the SEC argued that it "does not expect service to be completed" through existing routes and that an alternative method, such as direct email, is necessary to ensure the defendants are properly notified and the case can proceed.

Background of the Allegations

The legal action originates from an indictment unsealed in November 2024, which brought the allegations into the public domain. U.S. prosecutors allege that Adani Group executives were involved in a scheme to bribe Indian officials to secure favorable power purchase agreements for electricity generated by Adani Green Energy. The SEC's separate civil complaint further accuses the executives of violating U.S. securities laws. It claims they made false and misleading statements to American investors, particularly concerning the company's anti-corruption policies and adherence to ethical business practices.

India's Stance and Procedural Hurdles

The SEC's court filing sheds light on the reasons behind the diplomatic and legal impasse. It states that the Indian government rejected the summons requests on procedural grounds, citing non-compliance with signature and seal requirements. However, the SEC contends that these domestic procedural rules are not applicable under international agreements like the Hague Convention, which is designed to streamline cross-border legal service. The filing also noted that in its second rejection in December 2024, India's law ministry appeared to question the SEC's fundamental authority to seek the service of summons, adding a layer of jurisdictional complexity to the proceedings.

Severe Market Reaction

The news of the SEC's latest move sent shockwaves through the stock market, leading to a significant erosion of wealth for Adani Group investors. The sell-off was not limited to a single entity but affected the entire conglomerate, reflecting widespread market anxiety over the potential legal and financial repercussions.

Adani Group's Official Response

Throughout the investigation, the Adani Group has consistently and firmly denied all allegations. In various public statements and exchange filings, the conglomerate has described the charges as "baseless" and has affirmed its commitment to complying with all applicable laws in its jurisdictions of operation. The group has also stated that it will pursue "all possible legal recourse" to defend itself against the accusations. While it has maintained this stance, the group did not provide an immediate comment on the SEC's specific court filing to serve summons via email.

Analysis and Broader Implications

This case represents the most high-profile legal challenge an Indian conglomerate has faced in the United States, putting both the company and cross-border regulatory cooperation under a microscope. The SEC's decision to seek an alternative method for serving summons indicates a determined effort by U.S. regulators to advance the case despite the procedural roadblocks. For investors, this development introduces a new level of uncertainty. A prolonged and contentious legal battle could act as a significant overhang on the group's stock prices, potentially affecting investor sentiment and the conglomerate's ability to raise capital from international markets.

Conclusion

The sharp fall in Adani Group stocks on January 23 underscores the market's sensitivity to the ongoing U.S. investigation and the potential for further negative developments. The SEC's request to serve summons via email marks a critical escalation in the legal proceedings. The focus now shifts to the U.S. court's decision on this unconventional request, which will determine the next steps in a legal saga with significant implications for one of India's largest and most influential business empires.