Adani’s Legal Limbo Deepens: US Moves to Serve Charges Directly, Citing ‘Dead End’ with India
By Suresh Unnithan
In a calculated move the United States Securities and Exchange Commission (SEC) has sought permission from a federal court to serve summons on Indian billionaire Gautam Adani and his nephew Sagar Adani via email and their U.S. counsel, bypassing traditional diplomatic channels. This move comes after nearly 14 months of unsuccessful attempts to deliver the documents through India’s government under the Hague Service Convention, highlighting growing frustrations in the U.S. over what some perceive as deliberate delays by Indian authorities. The development underscores the U.S.’s resolve to pursue allegations of bribery, securities fraud, and wire fraud against key figures in the Adani Group, one of India’s largest conglomerates. With arrest warrants already issued and civil charges pending, the case represents a significant challenge to Adani’s global business empire and raises questions about international cooperation in combating corporate corruption.
The saga began in November 2024, when U.S. authorities unveiled criminal indictments and civil complaints against Adani and associates, accusing them of orchestrating a multi-million-dollar bribery scheme to secure lucrative solar energy contracts in India. As of January 2026, the U.S. appears to be tightening its grip, signalling that it will not relent despite diplomatic hurdles.
Gautam Adani and the Adani Group
Gautam Adani, often dubbed India’s second-richest businessman, founded the Adani Group in 1988 as a commodities trading firm. Today, it spans ports, airports, energy, mining, and agribusiness, with a market capitalization exceeding $200 billion at its peak. The group’s aggressive expansion, particularly in renewable energy, has been fuelled by close ties to the Indian government under Prime Minister Narendra Modi, leading to accusations of crony capitalism from critics.
Adani’s foray into international markets, including raising funds from U.S. investors through bond offerings, brought the group under U.S. regulatory scrutiny. The current cases stem from a $750 million bond issuance by Adani Green Energy Limited (AGEL) in 2021, which allegedly involved misleading statements about the company’s anti-bribery compliance. These bonds raised approximately $175 million from American investors, giving the U.S. jurisdiction over the matter under securities laws.
The Criminal Indictment: Bribery and Fraud Charges
On November 20, 2024, the U.S. Department of Justice (DOJ) unsealed a five-count criminal indictment in the Eastern District of New York against eight defendants, including Gautam Adani, Sagar Adani (executive director of AGEL and Gautam’s nephew), and Vneet S. Jaain (former CEO of AGEL). The charges include conspiracy to commit securities fraud, conspiracy to commit wire fraud, and substantive securities fraud.
The indictment alleges that between 2020 and 2024, the defendants conspired to pay over $265 million in bribes to Indian government officials to secure solar power supply agreements worth billions of dollars. These bribes were purportedly funneled to officials in states like Andhra Pradesh, Odisha, Tamil Nadu, Chhattisgarh, and Jammu and Kashmir to enable AGEL to win contracts for supplying 12 gigawatts of solar energy to the state-owned Solar Energy Corporation of India (SECI).
Prosecutors claim the scheme involved falsifying records and misleading investors about the company’s adherence to anti-bribery laws. For instance, during the 2021 bond offering, AGEL represented itself as compliant with the U.S. Foreign Corrupt Practices Act (FCPA), despite ongoing bribery activities. Additional defendants, including Cyril Cabanes (a former Azure Power executive), Saurabh Agarwal, Deepak Malhotra, and Rupesh Agarwal, face charges of obstructing justice by deleting evidence and withholding information from investigations.
Arrest warrants were issued for Gautam and Sagar Adani shortly after the indictment, marking them as fugitives in the eyes of U.S. law. However, no extradition request has been made to India yet, as the U.S. focuses first on serving summons and advancing the case.
The SEC’s Civil Complaint on Securities Violations
Parallel to the criminal case, the SEC filed two civil complaints on the same day. The primary one targets Gautam and Sagar Adani for violating Sections 17(a) of the Securities Act and Sections 10(b) and 13(b)(2)(B) of the Exchange Act, along with aiding and abetting violations. The SEC alleges that the Adanis “falsely touted” AGEL’s anti-bribery compliance in offering documents while actively engaging in the bribery scheme.
A separate civil action charges Cyril Cabanes with violating the FCPA’s anti-bribery provisions. The SEC seeks injunctions, disgorgement of ill-gotten gains, civil penalties, and officer-and-director bars against the defendants.
Serving legal documents on the Adanis has proven to be a protracted ordeal. Since the Adanis reside in India, the U.S. relied on the Hague Service Convention, a 1965 treaty facilitating cross-border service of judicial documents. In February 2025, the SEC requested India’s Ministry of Law and Justice—India’s central authority under the Convention—to serve the summons.
By March 2025, the request was forwarded to a district court in Ahmedabad, Gujarat, Adani’s home state. However, despite multiple status updates, the summons remained unserved as of October 2025, with the SEC reporting to the New York court that Indian authorities were “unable to serve.” Critics, including opposition figures in India, have accused the Modi government of shielding Adani, pointing to his visibility in public events while evading service.
India’s Ministry of External Affairs (MEA) initially stated it had not received any requests for summons or warrants, emphasizing that the matter involved private entities. Legal experts note that while the Hague Convention applies to civil matters, criminal summons might require separate mutual legal assistance channels.
Recent Developments: Shift to Alternative Service
Frustrated by the delays, the SEC filed a motion on January 21, 2026, before the U.S. District Court for the Eastern District of New York, seeking to abandon the Hague route and serve the Adanis through their U.S. attorneys and email. The agency declared that it no longer expects service via the Convention, citing a “dead end” in diplomatic efforts. This alternative method is permissible under U.S. Federal Rules of Civil Procedure when international agreements fail to yield results.
Social media discussions on platforms like X (formerly Twitter) have amplified the narrative of U.S. “tightening the noose,” with users highlighting the Modi government’s alleged resistance. Some view it as geopolitical pressure, while others see it as accountability for corporate misconduct.
However, the Adani Group has vehemently denied the allegations, calling them “baseless” and pledging to pursue legal remedies. Gautam Adani has not been arrested or extradited, and experts note that extradition would only proceed if warrants are enforced under the India-U.S. Extradition Treaty, which requires dual criminality.
If convicted, the defendants face severe penalties: up to 20 years in prison for wire fraud conspiracy and five years for securities fraud. The case could freeze Adani assets in the U.S. and strain India-U.S. relations, especially amid ongoing trade negotiations. It also revives debates on corporate governance in India, echoing earlier controversies like the 2023 Hindenburg Research report.
The U.S. cases against Gautam Adani mark a pivotal moment in cross-border enforcement of anti-corruption laws. As the SEC pushes for alternative service, the “noose” around Adani appears to be tightening, potentially forcing a reckoning for one of India’s most powerful businessmen. Whether this leads to trial, settlement, or diplomatic standoff remains uncertain, but the implications for global business ethics and international relations are profound.
*Research by Nanditha Subhadra
