A US judge has approved a hearing request by billionaire industrialist Gautam Adani to dismiss a US Securities and Exchange Commission (SEC) case alleging fraud. The plea argues that the SEC’s claims lack merit under US securities laws and represent an improper application of US law beyond its jurisdiction. The court order from the Eastern District Court of New York directs the parties to arrange a pre-motion conference.
Gautam Adani, chairman of the Adani Group, and Sagar Adani, executive director at Adani Green Energy, are seeking to challenge the SEC’s complaint early on to potentially avoid a lengthy legal process. The SEC, in conjunction with a criminal complaint by the US Department of Justice, accused the Adanis of attempting to pay bribes to Indian officials to secure solar energy contracts and concealing this from US investors and banks during fundraising.
The legal representatives of Gautam Adani and Sagar have refuted the bribery allegations, emphasizing the lack of credible evidence and jurisdictional grounds for the SEC’s case. The Adani Group has firmly denied all accusations, asserting that neither the group nor its executives have faced charges under the US Foreign Corrupt Practices Act.
The plea filed by Adani’s legal team challenges the SEC’s jurisdiction over a 2021 bond sale by Adani Green Energy, highlighting legal flaws in the SEC’s claims. The Adanis argue that the SEC’s case is extraterritorial, as the alleged misconduct occurred in India, the securities were not US-listed, and the issuer is Indian. They maintain that the SEC has failed to demonstrate a “domestic transaction” as required by US securities laws.
