Adanis Signal Willingness to Accept US Summons
Fourteen months after US regulators filed fraud charges, Gautam Adani and his nephew Sagar Adani have made their first filing in a New York federal court. Lawyers representing the Indian executives submitted a letter on January 23, seeking more time as talks continue with the US Securities and Exchange Commission (SEC). The move signals a possible willingness to negotiate how the summons will be served. Importantly, the filing came after India’s government twice refused to deliver the legal documents under an international treaty.
SEC Pushes to Bypass Indian Government
Meanwhile, the development followed a key move by the SEC just two days earlier. The regulator asked the court to bypass the Indian government and allow service of summons through email and the Adanis’ US-based lawyers. The request came after India’s ministry of law and justice declined to serve the documents on two occasions. First, the ministry cited missing signatures and seals. Later, it invoked an internal SEC rule to argue the summons did not fall under approved categories. The SEC dismissed both objections as baseless and challenged India’s position as an improper interference.
Legal Standoff Over Hague Convention
The SEC initially submitted a formal request under the Hague Convention on February 17, 2025. However, the Indian ministry rejected it on May 1, citing technical deficiencies. The SEC responded by stating that the convention requires neither an ink signature nor an official seal. It resubmitted the request later that month. In December, the ministry raised a fresh objection, referring to Rule 5(b) of the SEC’s internal procedures. US regulators countered that the rule has no relevance to service procedures under international law.
Market Impact and Allegations Against Adani Group
Following reports of the SEC’s motion, Adani Group shares fell sharply on Friday, sliding between 3.4% and 14.54%. The SEC filed civil charges against the Adanis in November 2024, alleging securities fraud linked to a $750 million bond offering that raised over $175 million from US investors. The Adani Group has denied all allegations and called them “baseless.” With talks now underway, the court’s next steps could prove crucial in determining how the high-profile case proceeds.
