By The U.S. Securities and Exchange Commission has summoned Indian billionaire Gautam Adani to respond to civil charges related to an alleged massive bribery scheme, escalating legal pressure following his federal indictment on criminal charges last week.
The SEC lawsuit, filed in the Eastern District of New York, alleges that Adani and his nephew Sagar engaged in hundreds of millions of dollars in bribes while “falsely touting the company’s compliance with antibribery principles and laws” during a $750 million bond offering. The filing demands a response within 21 days and seeks unspecified monetary penalties, along with restrictions on both men serving as officers of listed companies.
Federal prosecutors have issued arrest warrants for both Adanis, alleging their participation in a $265 million scheme to bribe Indian officials for power-supply contracts. The indictment claims the defendants secured deals expected to generate $2 billion in profits over 20 years while developing India’s largest solar power plant project.
The Adani Group has dismissed the criminal charges as “baseless.” The conglomerate’s chief financial officer emphasized that the indictment pertains to one Adani Green Energy contract representing approximately 10% of its business, with no other group companies implicated.
The crisis marks the second major blow to the ports-to-power conglomerate in two years, triggering immediate market repercussions as billions were erased from Adani Group companies’ valuations. The fallout has already affected international operations, with Kenya’s president canceling a significant airport project with the group.
Gautam Adani, 62, ranked among the world’s wealthiest individuals, built his empire into one of India’s largest business conglomerates. Adani Group representatives did not immediately respond to requests for comment on the SEC summons.
