The US Securities and Exchange Commission (SEC) has summoned Gautam Adani and his nephew Sagar Adani after it filed a lawsuit against them for allegedly engaging in a bribery scheme of $265 million to secure lucrative solar contracts.
The summons were sent to Gautam Adani’s Shanti Farm residence in Ahmedabad and Sagar Adani’s residence in Bodakdev, also located in the same city. According to the “summons in a civil action’’, they have been told to reply in 21 days.
“Within 21 days after service of this summons on you (not counting the day you received it)...you must serve on the plaintiff (SEC) an answer to the attached complaint or a motion under Rule 12 of the Federal Rules of Civil Procedure,” the November 21 notice, sent through the New York Eastern District Court, said.
“If you fail to respond, judgment by default will be entered against you for the relief demanded in the complaint. You also must file your answer or motion with the court,” it added.
While there were no official comment from the Adani group on the SEC summons, market circles said that it is part of the legal process.
CFO speaks
The group’s CFO Jugeshinder (Robbie) Singh said in a post on X (formerly Twitter) that none of the conglomerate’s portfolio companies that include 11 public firms, have been accused of any wrongdoing.
He added that the group would make a detailed comment on the charges once it gets counsel approvals.
“There is a lot of news and reports that will try to pick unrelated items and create a headline. My humble request is that we will respond in the fullness of time once we review in detail the matter as presented in the legal filing.”
According to Singh, the group became aware of the “specificity” of the US indictment against Gautam Adani two days ago.
“We were aware that something is afoot (and in February 2024 144a offering circular in risk factors we disclosed as such.
He said that none of the public companies from the group, “are subject to indictment (i.e. defendants in any legal proceedings in the recent DOJ lawyer filings to a court in NYC)”.
“None of the issuers (i.e. companies in our portfolio or specific issuers that are subsidiaries of the public companies) are accused of any wrongdoing,” he added.
Kenya airport
The Adani group on Saturday clarified on reports of Kenya cancelling more than $2.5 billion in deals after a US indictment on bribery charges, saying it had not entered into any binding agreement to operate Kenya’s main airport.
On the pact it had signed last month to build and operate key electricity transmission lines in Kenya for 30 years, the group said the project did not fall within the ambit of Sebi’s disclosure regulations, thereby not warranting any disclosure on its cancellation.
The group was responding to notices sent by stock exchanges to confirm reports of Kenyan President William Ruto ordering the cancellation of a procurement process that had been expected to award control of the country’s main airport after the conglomerate’s founder was indicted in the US.
With inputs from PTI
