Adani seeks dismissal of SEC fraud case in US, denies wrongdoing – The Times of India

Billionaire Gautam Adani and his nephew Sagar Adani have moved to challenge a US securities fraud case, asking a federal court in New York to dismiss the lawsuit filed by the US Securities and Exchange Commission (SEC) regarding a 2021 bond issue by Adani Green Energy Ltd (AGEL).In a filing before the Brooklyn federal court, Adanis, through its lawyers, denied wrongdoing and stated that investors suffered no losses in the bond issue being challenged, as per news agency PTI.

SEC case linked to 2021 Adani Green bond offering

The SEC had sued Gautam Adani and Sagar Adani in November 2024, alleging they were involved in a scheme to pay or promise hundreds of millions of dollars in bribes to Indian government officials to benefit Adani Green Energy, where both hold executive and board roles, according to Reuters.The regulator’s case centres on allegations that Adani Green failed to disclose the alleged bribery scheme in documents tied to a $750 million bond offering in 2021.The Adanis, in a pre-motion letter filed ahead of a planned April 30 dismissal request, argued that the SEC’s case over the 2021 bond sale is flawed on several legal grounds.

Adanis argue US court has no jurisdiction

A key plank of the defence is that the case falls outside US jurisdiction.According to PTI, Adanis argued that the court lacks personal jurisdiction because neither of them had sufficient contact with the United States or direct involvement in the bond offering.Their lawyers said the $750 million bond issue was conducted outside the US under Rule 144A and Regulation S exemptions, with the securities initially sold to non-US underwriters and only later resold in part to qualified institutional buyers.The defence described the SEC’s claims as “impermissibly extraterritorial”, arguing that both defendants are based in India, the alleged misconduct took place entirely in India, and the bonds were never traded on a US exchange.The filing also says the issuer is Indian and the securities were not listed in the US, strengthening the argument that US securities law should not apply.

Defence says no investor losses, no credible bribery evidence

The Adanis have also argued that the SEC has failed to show investor harm.The filing states the regulator does not allege any investor losses, adding that the bonds matured and were fully repaid with interest in 2024.The defence further disputes the underlying bribery allegations. The Adanis said there is no credible evidence supporting the claims.

Filing says SEC failed to show direct role or intent

The Adanis’ lawyers also argued that the complaint does not specifically tie Gautam Adani to the bond issuance.The filing says the SEC does not allege that he approved the issuance, attended key meetings, or directed activity aimed at US investors.The defence also said the SEC failed to show a “domestic transaction”, which it argued is necessary under US Supreme Court precedent for US securities laws to apply.In addition, the filing says the SEC has not linked either Gautam or Sagar Adani to specific misleading statements or demonstrated any intent to defraud.Statements cited by the SEC about ESG commitments, anti-corruption standards and corporate reputation were described by the defence as non-actionable “puffery”, or broad corporate optimism that investors could not reasonably rely on, according to PTI.Adanis are now seeking dismissal of the SEC case in full and have said they are ready to appear for a pre-motion conference if needed.