In a significant procedural breakthrough, Gautam Adani and his nephew Sagar Adani have formally agreed to accept service of legal summons from the U.S. Securities and Exchange Commission (SEC).
The agreement, filed in a Brooklyn federal court on January 30, 2026, ends a 14-month standoff that had stalled the SEC’s civil fraud case because the defendants—based in India—could not be formally notified under international treaties.
1. Key Details of the Agreement
The “stipulation” is a voluntary acknowledgment that satisfies U.S. due process, removing the need for a judge to rule on alternative service methods like email.
- 90-Day Deadline: Once the judge approves the agreement, the Adanis have 90 days to file a formal response or a motion to dismiss the case.
- Jurisdiction Reservation: Crucially, while they have accepted the legal notice, their lawyers stated they do not yet accept the jurisdiction of the Eastern District of New York (EDNY). They reserve the right to argue that the U.S. court has no authority over them.
- Legal Representation: Gautam Adani is being represented by high-profile Wall Street lawyer Robert Giuffra Jr. (co-chair of Sullivan & Cromwell), whose clients have included major political and corporate figures.
2. Background: The 14-Month Standoff
The SEC’s civil case, originally filed in November 2024, alleges that the Adanis misled U.S. investors about a $265 million bribery scheme to secure solar power contracts in India.
- Hague Convention Block: For over a year, the SEC attempted to serve the summons through India’s Ministry of Law and Justice. The ministry reportedly refused the requests twice on procedural grounds, such as missing seals and signatures.
- The Email Threat: On January 21, 2026, the SEC asked a U.S. judge to bypass the Indian government and allow them to serve the Adanis via business email. This pressure appears to have prompted the Adanis’ legal team to negotiate the voluntary acceptance of service on January 23.
3. Adani Group’s Official Position
In a stock exchange filing on January 31, 2026, Adani Green Energy Ltd (AGEL) clarified its stance to investors:
- Procedural Step: The company described the move as purely procedural and reiterated that AGEL itself is not a party to the proceedings.
- Denial of Charges: The group maintains that the allegations are “baseless.” They emphasized that while civil fraud charges exist, there are no charges of bribery or corruption against the directors under the U.S. Foreign Corrupt Practices Act (FCPA) in this specific SEC matter.
- Civil vs. Criminal: While this agreement advances the civil case, a separate criminal indictment filed by the U.S. Department of Justice remains open with no major public developments in over a year.
4. Impact on Markets
The resolution of this procedural hurdle has brought a level of stability to Adani stocks, which had shed $12.5 billion in value earlier in January when the SEC first sought the email summons. By moving into the “defense” phase of the litigation, the group is signaling its readiness to fight the allegations on their merits rather than fighting over how the papers were delivered.
