The Indian government has forwarded a legal notice from the U.S. Securities and Exchange Commission (SEC) to an Ahmedabad court, asking it to serve the summons on industrialist Gautam Adani. This legal step is linked to serious allegations of bribery and financial fraud involving Adani Green Energy Ltd. and Azure Power.
How Did the U.S. SEC Send the Summons to India?
The SEC is a U.S. regulatory body that oversees financial markets and ensures companies follow U.S. securities laws. Since the allegations involve financial transactions with U.S. investors, the SEC has taken legal action against Gautam Adani and others.
Because Adani resides in India, the U.S. authorities could not directly serve him the legal notice. Instead, they followed an international process under the Hague Convention on the Service of Judicial and Extrajudicial Documents in Civil and Commercial Matters, 1965. This convention allows countries to request legal assistance from each other in serving legal notices.
Here’s what happened:
- The Central Authority of the USA requested India to serve the notice.
- The Union Law Ministry in India reviewed the request.
- On February 25, 2025, the Department of Legal Affairs (DLA), which works under the Union Law Ministry, forwarded the summons to the Ahmedabad District & Sessions Court.
- The court in Ahmedabad will now serve the legal notice to Gautam Adani at his local address in Gujarat.
What Are the Allegations Against Gautam Adani?
According to the SEC, Gautam Adani and his nephew Sagar Adani are involved in a $265 million bribery scheme. The allegations state that:
- They bribed Indian government officials to secure long-term energy contracts at prices higher than the market rates.
- Adani Green raised over $175 million from U.S. investors, and these transactions are now under investigation.
- Another company, Azure Power, was also involved. One of its top executives, Cyril Cabanes, is accused of participating in fraudulent activities.
- Azure Power’s stock was traded on the New York Stock Exchange (NYSE), making it subject to U.S. financial laws.
Since U.S. investors were involved, the SEC has filed a legal case in the U.S. District Court for the Eastern District of New York. They are working with federal prosecutors to investigate further.
India’s Role in the Legal Process
Because India is part of the Hague Convention, it has a legal duty to assist in serving notices from other countries. However, there was some confusion about whether the SEC’s request was received.
- On February 19, 2025, the newspaper The Hindu filed a Right to Information (RTI) request to check if the Indian government had received any legal request from the U.S. SEC.
- The Department of Legal Affairs (DLA) initially said they had not received anything.
- But later, on February 25, 2025, the Union Law Ministry confirmed that the summons had been forwarded to the Ahmedabad court.
Now, the Ahmedabad court will officially serve the legal notice to Gautam Adani.
Adani Group’s Response and Future U.S. Business Plans
Despite these allegations, Adani Group seems confident about its future in the United States. According to reports, the company believes the situation will become more favorable under the new U.S. administration led by President Donald Trump.
The Financial Times reported that:
- The Trump administration has paused enforcement of the Foreign Corrupt Practices Act (FCPA), 1977. This is a key U.S. law used to punish companies involved in bribery and corruption.
- Since this law is not currently being enforced strictly, Adani Group is hopeful that it will not face major consequences in the U.S.
- The company is looking for new business opportunities in the U.S., expecting fewer legal restrictions.
What’s Next?
The Ahmedabad court will now move forward with serving the summons to Gautam Adani. Once he receives the notice, he will have to respond legally to the allegations in the U.S. District Court for the Eastern District of New York.
If Adani Green and its executives are found guilty, they could face:
- Heavy financial penalties
- Restrictions on doing business in the U.S.
- A loss of investor trust, which may affect their global business
However, if U.S. legal policies change under President Trump, the consequences for Adani Group could be much lighter than expected. The final outcome will depend on how both the Indian and U.S. legal systems handle the case in the coming months.
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