Not party to legal proceedings in US, says Adani Enterprises
What's the story
Adani Enterprises has clarified that it is not involved in any of the legal proceedings mentioned in recent media reports. The clarification comes after a news article on January 23 claimed a US regulator was trying to serve legal summonses to Gautam and Sagar Adani. Responding to queries from the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), the firm emphasized there are no allegations against it.
Regulatory compliance
Adani Enterprises reiterates previous disclosure
In its exchange filing, Adani Enterprises reiterated its earlier disclosure issued in November 2024. The firm stressed that the media report does not warrant any extra disclosure under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements. "There are no allegations made against the Company in, and the Company is not party to, these proceedings," Adani Enterprises said in its clarification to stock exchanges.
Market impact
Adani Group stocks face selling pressure
The clarification from Adani Enterprises comes after a heavy sell-off in the group's stocks on January 23. This was triggered by reports that the US Securities and Exchange Commission (SEC) had moved closer to pursuing legal action against senior members of the conglomerate's leadership. According to Bloomberg, the SEC has sought permission from a US district judge to proceed with serving legal summonses to Gautam and Sagar Adani.
Legal strategy
SEC seeks alternative methods for serving summons
The SEC has sought judicial clearance to use other legally permissible means to formally notify Gautam and Sagar Adani. This comes after several attempts via standard channels failed. The regulator said it had repeatedly requested help from Indian authorities to deliver the notices, but those efforts have not succeeded so far.
Bribery scheme
Allegations against Adani Group executives
The developments trace back to November 2024, when US authorities accused some Adani Group executives of taking part in an alleged bribery scheme involving payments to Indian officials. The SEC has since filed a civil lawsuit against Gautam and Sagar Adani, that is separate from a criminal case initiated by the US Department of Justice against the Adani Group and other defendants.
Market response
Adani Group denies allegations, shares plummet
Adani Group has rejected the bribery allegations as baseless, and has said it will pursue all available legal options to defend itself. Following the news of the SEC's alleged legal action, shares of Adani Green Energy Ltd plunged 14.6%. The decline spread across other group companies including Adani Energy Solutions (down 12%), flagship firm Adani Enterprises Ltd (down by 10.7%), Adani Ports and Special Economic Zone (down 7.5%), and Adani Power (down 5.5%).