Gautam Adani, India’s second-richest man and leader of the massive Adani Group, is facing serious trouble. The United States Securities and Exchange Commission (SEC) has issued a summons to him, accusing his company of paying bribes to Indian officials to win major contracts. According to Reuters, a New York court filing revealed that Adani must respond to the SEC within 21 days. If the accusations are proven, Adani and his nephew, Sagar Adani, could face fines and even be barred from serving as leaders in public companies.
This isn’t the first time Adani Group has faced controversy. US prosecutors recently charged Gautam Adani, his nephew, and six others with running a $265 million scheme to bribe Indian officials. The alleged goal? To secure lucrative power deals for the group’s renewable energy projects.
Hindenburg’s Shadow Still Looms
The current charges come after last year’s bombshell claims by Hindenburg Research, a US-based short-seller. The firm accused Adani Group of manipulating stock prices and engaging in accounting fraud. Those allegations wiped out nearly $150 billion in Adani Group’s stock value.
The company denies the new accusations, calling them “baseless” and promising to fight back with every legal tool available.
A Legal Clash Between Two Worlds
The case has sparked debate about the US trying to apply its laws to an Indian company for actions that allegedly happened in India. Prominent legal expert Ravi Batra pointed out that such “extraterritorial” use of US laws is rare and controversial. He argued that just because Adani Group raised money in the US, it doesn’t mean the country has the right to prosecute the company for alleged wrongdoing in India.
Kanwal Sibal, a former Indian Foreign Secretary, echoed this sentiment. He questioned whether the US should interfere in cases involving alleged bribery in India, particularly when American investors haven’t suffered financial losses. Sibal suggested that, if evidence is strong, the case should be handed over to Indian authorities to ensure justice through India’s legal system.
The Impact on Adani Group
Adani Group has already taken a financial hit. Its stock value plunged by $26 billion following the US charges. The accusations mostly center on Adani Green Energy, which makes up about 10% of the group’s overall business.
However, the company insists that the charges are overblown. CFO Jugeshinder Singh clarified that none of Adani Group’s 11 listed companies or their subsidiaries are defendants in the US case. He emphasized that the issue involves a single contract and not the entire conglomerate.
What Happens Next?
The clock is ticking for Gautam Adani to respond to the SEC’s summons. The outcome could have major implications—not just for Adani Group but also for how international business is governed.
For now, Adani Group remains defiant, dismissing the accusations and continuing business as usual. But with billions of dollars and the company’s reputation on the line, the stakes couldn’t be higher.
The question remains: Will Adani weather this storm, or is this the beginning of the end for one of India’s most powerful business empires?
