February 19th 2025.
The US Securities and Exchange Commission has been working diligently to serve its complaint on Gautam Adani and Sagar Adani, who are both located in India. In a recent status update to Judge Nicholas Garaufis at the United States District Court, Eastern District of New York, the SEC reported that its efforts to serve the complaint are still ongoing. This includes a request for assistance from the Indian authorities under the Hague Service Convention, which deals with serving legal documents in foreign countries.
The SEC's complaint, which was filed on November 20th of last year, alleges that Gautam Adani and Sagar Adani violated federal securities laws by making false and misleading statements about Adani Green Energy Ltd during a debt offering in September 2021. Since the defendants are located in a foreign country, the SEC must follow Rule 4 of the Federal Rules of Civil Procedure for service of the summons and complaint. This rule does not specify a time limit for service, and the SEC may use any internationally agreed upon method that is likely to give notice, such as the Hague Service Convention.
In its update, the SEC's Counsel Christopher Colorado cited a case that recognizes service via the Hague Service Convention as a valid means of serving defendants in India. The SEC has been in contact with the defendants or their counsel and has sent them Notices of Lawsuit and Requests for Waiver of Service of Summons, along with copies of the complaint. Additionally, the SEC has requested assistance from India's Ministry of Law and Justice, the Central Authority for India under the Hague Service Convention. This process is still ongoing, and the SEC will continue to inform the Court of its progress.
The SEC had first charged Gautam Adani, Sagar Adani, and Cyril Cabanes, an executive of Azure Power Global Ltd., in November of last year for their involvement in a bribery scheme. In a parallel action, the US Attorney's Office for the Eastern District of New York unsealed criminal charges against the Adanis and Cabanes, along with others connected to Adani Green and Azure Power. The US Department of Justice has indicted Adani for his alleged role in paying $250 million in bribes to Indian officials in exchange for favorable solar power contracts.
The Adani group has vehemently denied these allegations, stating that they are "baseless." They have also pointed to a statement by the US Department of Justice that reminds us that the charges in the indictment are only allegations and that the defendants are presumed innocent until proven guilty. The group has stated that they will utilize all legal options available to them to fight these accusations and maintain their commitment to upholding the highest standards of governance, transparency, and regulatory compliance across all of their operations. They want to reassure their stakeholders, partners, and employees that they are a law-abiding organization and fully compliant with all laws.
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