New York, April 8: A US court has permitted a pre-motion hearing sought by billionaire industrialist Gautam Adani to argue for the dismissal of a fraud case filed by the US Securities and Exchange Commission, marking a key procedural step in the ongoing legal challenge.
The order issued by the Eastern District Court of New York directs both parties to schedule a pre-motion conference after receiving a formal request from the defendants. The hearing will allow the Adanis to present arguments seeking an early dismissal of the complaint before the case proceeds further.
The case, initiated by the SEC in November 2024 alongside a criminal complaint by the US Department of Justice, alleges that Adani and associates were involved in a scheme to pay more than $250 million in bribes to Indian officials to secure solar energy contracts. The complaint also accuses them of concealing the alleged scheme from US investors and financial institutions during fundraising.
Legal representatives for Gautam Adani and his nephew, Sagar Adani, have contested the allegations, stating that there is no credible evidence to support claims of bribery. They have argued that the SEC lacks jurisdiction and has failed to establish actionable violations under US securities laws.
In filings submitted before the court, the defence maintained that the case represents an impermissible application of US law beyond its territorial limits. The plea asserts that the alleged activities occurred entirely in India, involved an Indian issuer, and did not constitute a “domestic transaction” as required under US legal standards.
The legal team further argued that the bond sale cited in the complaint—a $750 million issuance by Adani Green Energy in 2021—was conducted outside the United States under Rule 144A and Regulation S exemptions. According to the defence, the securities were initially sold to non-US underwriters and only later reached qualified institutional buyers, limiting the applicability of US jurisdiction.
The filings also state that neither Gautam Adani nor Sagar Adani had sufficient direct contact with the United States or involvement in the bond offering to establish personal jurisdiction. The plea contends that the complaint does not allege their approval of the issuance, participation in key meetings, or direct engagement with US investors.
Additionally, the defence has pointed out that the SEC has not claimed any investor losses in connection with the bond issuance. The bonds have since matured, and Adani Green Energy repaid all principal and interest in full in 2024, according to the filings.
The plea further disputes the bribery allegations, stating that the project in question involved solar energy generation within India and did not include participation from US companies or customers.
The court’s decision to allow the hearing does not address the merits of the case but enables the defendants to seek dismissal at an early stage. The outcome of the pre-motion conference will determine whether the case proceeds to further stages of litigation, including discovery and trial.
