US SEC seeks Law Ministry's help to serve legal notices to Adanis

Mumbai: The US Securities and Exchange Commission (SEC) has asked India's Ministry of Law and Justice to help serve legal notices to industrialist Gautam Adani and his nephew Sagar in connection with its probe into alleged securities fraud and a $265 million bribery scheme.

The SEC made the request by invoking the Hague Service Convention, which facilitates legal cooperation in cross-border cases.

According to documents seen by ET, the SEC stated in a letter that both individuals "are located in India, and the SEC's efforts to serve them there are ongoing, including through a request for assistance to the Indian authorities".

The US agency has sent 'Notices of Lawsuit and Requests for Waiver of Service of Summons' to the Adani Group chairman, his nephew and their legal representatives.

The Adani Group did not respond to ET's queries.

Legal experts said this is a procedural step under the Hague Service Convention to ensure compliance with international law. "India's role is to process the request through its designated central authority, which verifies compliance before serving the documents," said Nilesh Tribuvann, managing partner at White & Brief - Advocates. "The Indian government can assess the request's validity but plays only a procedural role."

Burgeon Law senior partner Ketan Mukhija said the Adani Group has several options: cooperate, contest the allegations, or seek a settlement, depending on the charges.

The SEC's probe is related to securities fraud allegations linked to a 2021 bond offering. The agency has also linked the Adani case to its ongoing probe under the Foreign Corrupt Practices Act (FCPA) against former Azure Power executives Ranjit Gupta and Rupesh Agarwal, who are accused of bribery to secure government contracts in India.

Adani Green Energy Ltd clarified in November that Sagar and Gautam Adani, as well as its chief executive Vneet S Jaain were not charged under the FCPA or bribery-related violations. They face charges of securities fraud conspiracy, wire fraud conspiracy and securities fraud, including allegations tied to the bond offering.

A US court has consolidated civil and criminal cases against the three executives. "The next steps will depend on whether the Adanis contest the service or engage with the US legal system," said Tribuvann.

The Adani Group has appointed Kirkland & Ellis and Quinn Emanuel Urquhart & Sullivan LLP to represent it in the case, people in the know told ET.

The SEC is also probing Canadian institutional investor CDPQ's executives Cyril Cabanes, Saurabh Agarwal and Deepak Malhotra for allegedly destroying evidence and withholding key information in the bribery case.