US government shutdown pauses SEC's civil case against Adani
What's the story
The lawsuit from the US Securities and Exchange Commission (SEC) against Adani Group Chairman Gautam Adani has been temporarily suspended due to a federal government shutdown. The SEC had accused Adani of violating securities laws along with his nephew, Sagar R. Adani, and Vneet S. Jaain, executives at Adani Green Energy Ltd. The criminal indictment includes allegations of fraud and involvement in a $250 million bribery scheme.
Legal proceedings
Criminal case against Adani remains active
The SEC's civil suit has been paused after the agency's lawyer was placed on furlough due to the shutdown. US Magistrate Judge James Cho has since ordered a status report within 30 days of the shutdown's end. However, the criminal case against Adani remains active and hasn't been affected by the pause in civil proceedings.
Case details
SEC alleges Adani misled investors, paid bribes for contracts
The SEC alleges that Adani and his associates raised investor funds in the US while concealing misconduct. The criminal indictment alleges that in 2021, Adani and his associates promised over $250 million in bribes to Indian officials to secure solar energy contracts. The Adani Group dismissed these allegations as "baseless." In June, Gautam Adani said: "Despite all the noise, the facts are that no one from the Adani Group has been charged with violating... FCPA or conspiring to obstruct justice."
Service delay
Legal summons to Indian defendants pending
For Indian-based defendants, the SEC's service of legal summons depends on cooperation with India's Ministry of Law and Justice under the Hague Service Convention. As per recent filings, these summons have not been formally served yet. The pause in enforcement actions could lead to procedural and diplomatic maneuvers in this high-stakes cross-border litigation.