Billionaire Gautam Adani and his nephew Sagar Adani have won approval from a US court to hold a hearing on their motion to dismiss a fraud case filed by the US Securities and Exchange Commission (SEC). The Adanis argue that the SEC lawsuit lacks jurisdiction and fails to present credible evidence.
The case, originally filed in November 2024 alongside a related criminal complaint by the US Department of Justice, alleges that the Adanis sought to pay over $250 million in bribes to Indian officials to secure solar energy contracts, while hiding the scheme from US investors and banks.
Adani Group has denied all allegations, emphasizing that no entities or executives, including Adani Green Energy—the renewable energy arm that raised the funds—are charged under the US Foreign Corrupt Practices Act. Gautam Adani chairs the Adani Group, while Sagar Adani serves as executive director of Adani Green Energy.
The court in Brooklyn, New York, granted a pre-motion hearing, allowing the Adanis to present their arguments before a full trial or lengthy discovery process. Their lawyers maintain that the SEC lacks personal jurisdiction, as neither defendant had significant contacts with the US or direct involvement in the $750 million bond offering, which was conducted outside the United States under Rule 144A and Regulation S exemptions.
The lawyers also noted that the SEC complaint does not allege any investor losses, and the bonds were fully repaid with interest by 2024. They claim the bribery allegations lack credible evidence and that the purported misstatements cited by the SEC amount to “puffery”—general corporate optimism that cannot be reasonably relied upon by investors.
In addition, the Adanis argue that the SEC is overreaching its authority because the bonds were not registered in the US, the issuer is Indian, and all alleged actions occurred in India. Citing US Supreme Court precedent, they state that the SEC must show a “domestic transaction” within the United States, which it has not done.
The defendants’ lawyers have submitted a pre-motion letter to the Eastern District of New York, outlining the grounds for dismissal: lack of personal jurisdiction, impermissible extraterritorial application of US law, vague allegations, and absence of involvement in the bond transactions.
Gautam Adani is represented by Sullivan & Cromwell LLP, while Sagar Adani’s legal team includes Nixon Peabody LLP and Hecker Fink LLP. The hearing is seen as a crucial step in challenging the SEC case before it proceeds to a full trial, potentially allowing the Adanis to avoid a prolonged legal battle.
The SEC’s lawsuit remains focused on alleged payments to secure solar energy contracts between 2020 and 2024. However, the Adanis stress that all financial obligations were met, no US investors suffered losses, and there is no direct US involvement in the transactions.
The upcoming hearing will give the Adanis an opportunity to seek dismissal of the case at an early stage, arguing that the SEC’s claims are legally insufficient and beyond the reach of US securities law.
