Gautam Adani, nephew summoned in US SEC’s $265 Million bribery case

Gautam Adani, founder of the Adani Group, and his nephew Sagar Adani have been summoned by the US Securities and Exchange Commission (SEC) over allegations of paying $265 million (approximately ₹2,200 crore) in bribes to secure lucrative solar power contracts. The summons, served to their residences in Ahmedabad—Shantivan Farm for Gautam Adani and Bodakdev for Sagar Adani—require a formal response within 21 days.

The SEC claims the bribes were part of a scheme executed between 2020 and 2024 to gain favorable solar energy supply contracts that could yield profits of $2 billion over two decades. The accusations surfaced alongside an indictment filed in a New York court, where eight individuals, including Gautam Adani and Sagar Adani, have been charged. Prosecutors allege that the scheme involved misleading US investors and obtaining loans under false pretenses.

The notice warns of a default judgment if the defendants fail to respond. "You must serve on the plaintiff an answer to the attached complaint or a motion under Rule 12 of the Federal Rules of Civil Procedure," states the summons issued on November 21 through the New York Eastern District Court.

The SEC charges are separate from the indictment by the US Department of Justice (DOJ). The latter also implicates Cyril Cabanes, an executive at Azure Power Global, in the bribery scheme. The Adani Group has strongly denied the allegations, emphasizing its commitment to governance and compliance. "The Adani Group has always upheld the highest standards of governance, transparency, and regulatory compliance," said the group in a statement.

The investigation, which began in 2022, alleges obstruction by the Adani Group. Prosecutors claim the conglomerate misled US investors by providing false information about its anti-bribery policies while securing $2 billion in loans and bonds. These funds were raised partly through US institutions based on fabricated claims of ethical practices.

US Attorney Breon Peace described the allegations as a threat to financial market integrity. "The defendants orchestrated an elaborate scheme to bribe Indian officials for billion-dollar contracts and misrepresented the scheme to international investors," he stated, reaffirming the commitment to combating corruption in global trade.

The Adani Group has announced plans to use all legal avenues to contest these claims, insisting that its business practices adhere to the law.