U.S. SEC Summons Gautam Adani and Nephew Sagar in Bribery Case Allegations

The U.S. Securities and Exchange Commission (SEC) has summoned Adani Group Chairman Gautam Adani and his nephew, Sagar Adani, to respond to allegations of paying $265 million in bribes to secure lucrative solar power contracts. The summons, issued on November 21, 2024, demands a reply within 21 days from the Adanis in response to charges related to bribery and fraudulent activities.

The SEC's case involves an accusation that the Adanis, along with seven other defendants, including Sagar Adani, who is a director at Adani Green Energy Ltd, allegedly bribed Indian government officials between 2020 and 2024 to secure solar energy contracts. These contracts, the SEC claims, were expected to generate $2 billion in profits over the next two decades.

According to the SEC filing, the Adani Group and its affiliates raised over $2 billion in loans and bonds from U.S. firms, misrepresenting their anti-bribery practices and failing to disclose the ongoing bribery investigation. These actions, prosecutors argue, were an effort to mislead investors while continuing to raise capital globally.

The SEC’s investigation began in 2022, and it is believed to have uncovered attempts to obstruct the probe. The Adani Group, which has consistently denied the bribery allegations, has vowed to use all available legal means to challenge the charges. In a statement, the company reaffirmed its commitment to upholding the highest standards of governance, transparency, and legal compliance.

The case adds to a mounting list of legal challenges for the Adani Group, which also faces an indictment from the U.S. Department of Justice. The company has been accused of orchestrating an elaborate bribery scheme to gain solar contracts, and prosecutors allege that they lied to investors about these activities while seeking capital from international markets.

The SEC's charges highlight broader concerns about corruption in the international marketplace and aim to protect investors from entities that seek to undermine the integrity of financial markets. U.S. Attorney Breon Peace emphasized the government's commitment to eradicating such corruption.

As the Adanis face growing legal scrutiny, the case has attracted significant attention both in India and internationally, placing the Adani Group’s business practices under the microscope.