Adani Group Rs 2,200 crore bribery case: US SEC cannot directly summon billionaire, notice to follow ‘proper channels’ | India News – Times of India

NEW DELHI: The US Securities and Exchange Commission (SEC) will have to use formal diplomatic protocols to issue subpoenas to Adani Group founder Gautam Adani and his cousin, Sagar Adani, in a case involving alleged payouts of $265 million (Rs 2,200 crore) on the secure solar contracts. The SEC does not have the jurisdiction to summon foreigners directly and must channel its request through the Indian embassy in the US, sources said.
Diplomatic hurdles and established protocols
The procedure is governed by the Hague Convention, 1965 and the India-US Mutual Legal Assistance Treaty. Officials familiar with the matter clarified that summons cannot simply be sent by mail, but these formalities must be met, which could delay the process.
The SEC’s subpoena, dated Nov. 21 and filed in a New York court, requires a response within 21 days of receipt. “If you do not respond, you will be sentenced in absentia,” the message warns.
Allegations and legal proceedings
Gautam Adani, his cousin Sagar and others including Cyril Cabanes of Azure Power Global are accused of paying bribes between 2020 and 2024 to win lucrative solar contracts. These deals reportedly promised $2 billion in profits over twenty years.
The indictment, unsealed on Wednesday, alleges that the Adani Group raised $2 billion in loans and bonds, including from US companies, on misleading bribery claims. Prosecutors say the investigation, which began in 2022, has encountered obstacles.
“As alleged, the defendants orchestrated an elaborate scheme to bribe Indian government officials to secure billions of dollars worth of contracts and… lied about the bribery scheme while attempting to raise capital from U.S. and international investors,” said U.S. Attorney Breon Peace.
“My office is committed to rooting out corruption in the international marketplace and protecting investors from those who seek to enrich themselves at the expense of the integrity of our financial markets,” he added.
Adani Group denies the allegations
The Adani Group has strongly denied the allegations. “The Adani Group has always been and steadfastly committed to maintaining the highest standards of governance, transparency and regulatory compliance across all jurisdictions of its operations,” the company said.
The group assured stakeholders and partners of compliance with the laws and indicated its intention to explore all legal options to refute the allegations.
An indictment in the US means a formal indictment brought by a grand jury, to which the accused must respond or be convicted in absentia. The outcome of this high-profile case could have far-reaching consequences for international business practices and investor confidence.
(With input from agencies)