5 days ago
Indian Govt Is Yet to Serve Summons to Adanis, Says US SEC
New Delhi: The US Securities and Exchange Commission informed a New York federal court on June 27 that the Indian government has yet to forward the serving of summons to tycoon Gautam and Sagar Adani, nearly six months after being first contacted to do so under an international convention.
In a letter dated June 27, the SEC submitted its third status report of the year, following earlier updates in February and April. The agency noted that it had previously sought the assistance of India's Ministry of Law and Justice under Article 5(a) of the Hague convention to serve the summons and complaint on the Adanis in India. It also said it had sent notices of the lawsuit and waiver requests directly to the Adani counsels.
However, there has been no confirmation yet that the Indian authorities have delivered the documents. 'Since the April Status Update, the SEC has corresponded with the India MoLJ concerning the efforts of the relevant Indian judicial authorities to serve the Summons and Complaint on Defendants, but the SEC understands that those authorities have not yet effected service,' the SEC wrote in the status report filed to the Eastern District of New York.
In its previous update submitted in April, the SEC had said that the Indian Ministry of Law and Justice had acknowledged receipt of the commission's request and had forwarded it to the relevant judicial authorities.
The legal proceedings stem from criminal and civil action launched in November last year.
The US Department of Justice had then accused Gautam Adani, his nephew Sagar Adani, former Adani Green Energy CEO Vneet Jaain, two former executives of Indian renewables firm Azure Power, and three former officials of the Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ) of funnelling over $250 million in bribes to Indian government officials between 2020 and 2024 to secure solar energy contracts.
In a parallel civil action, the SEC filed a suit against the Adanis for allegedly violating various anti-fraud provisions of US federal securities laws. Cyril Cabanes, CDPQ's former Asia-Pacific infrastructure head and a former board member of Azure Power, was also named by the SEC for violating the Foreign Corrupt Practices Act (FCPA).
Two days after the two indictments were unsealed, the federal court in New York issued summons for the two Adanis in the SEC case on November 22.
Two days after the criminal and civil cases were unsealed, the New York federal court issued summons for the two Adanis on November 22. But service of those summons remains pending.
Following Donald Trump's return to office, he issued an executive order to suspend enforcement of the FCPA, prompting speculation that this might lead to a settlement between the Adanis and US authorities. While informal discussions may be underway, there has been no public indication of progress so far. The charges faced by the Adanis in the SEC are not related to FCPA, but for wire and securities fraud.
