Gautam Adani accepts US court notice after 15 months:He and his nephew Sagar must respond within 90 days in SEC fraud case

After 15 months in a civil fraud case filed by the U.S. Securities and Exchange Commission (SEC), Gautam Adani and his nephew Sagar Adani have agreed to accept legal notices. Court documents filed in New York show that Adani’s lawyers will receive the regulator’s papers on their behalf. This development removes the need for a judge to decide how to serve notices to the Adani family. The case dates back to November 2024, when the SEC accused Adani Green Energy Limited (AGEL) of misleading investors. Following the acceptance of the notice, the Adani Group has 90 days to submit its defense. Notice accepted through lawyers A filing in Brooklyn Federal Court confirms that a consent letter has been signed between Adani and the SEC. Previously, the SEC had requested permission to serve notices via email or other means, citing difficulties in reaching Adani in India. With the lawyers now accepting the notice, this procedural hurdle has been cleared. Adani Group: Just a legal procedure AGEL clarified in a filing to the stock exchange that this step is purely procedural. The company emphasized that accepting the notice does not imply recognition of the New York court’s jurisdiction. The Adani Group has reserved all rights of defense and plans to seek dismissal of the case. 90-day timeline: What happens next Court documents outline the sequence of proceedings: · 90 days: Adani Group to file a defense or petition for dismissal. · 60 days: SEC to respond to Adani’s filing. · 45 days: Adani Group to submit a final response to the SEC’s arguments. Allegations of bribery and misleading investors The SEC alleges that AGEL provided false information to US investors while raising funds. Separately, U.S. prosecutors have accused Adani of conspiring to pay $265 million (₹2,429 crores) in bribes to secure solar contracts in India. The Adani Group has categorically denied all allegations, calling them baseless. What happens if you don’t accept the notice? Negative impact on group’s reputation: International market takes refusal to accept notice negatively. This sends a message to investors that the group is afraid to face the law, which could directly affect the company’s shares and global ratings. Could lose chance of defense: If the court had allowed notice to be sent via email and Adani still didn’t respond, the US court could have passed a one-sided judgment against them. This would have denied Adani the opportunity to present their case. Court’s stance could become strict: According to legal experts, if an accused deliberately tries to avoid notice, the judge’s stance towards that party could become strict. This could have portrayed Adani as a ‘fugitive’ or someone ‘evading law’. International Legal Battle Begins: Since Gautam Adani is in India, the American regulator (SEC) would have to rely on an international treaty called the ‘Hague Convention’. In this process, the US government would write a formal letter to India’s Ministry of Law, which is a very long and tedious process. Case Gets Delayed for Months: Officially serving notice to Adani could take another 1 to 2 years. Until the notice is legally delivered, the US court could not begin the main hearing of the case. Permission to serve notice forcefully: As reported in the news, SEC had already requested the court to allow them to send notice to Adani via ’email’ or through their other lawyers. If Adani did not agree himself, the judge could give this order, which is called Alternative Service in legal terms. Trump’s lawyer will handle Gautam Adani’s case Gautam Adani has appointed renowned Wall Street lawyer Robert Giuffra Jr. for his advocacy. Robert Giuffra is the co-chair of ‘Sullivan Cromwell’ law firm. The notable thing is that he has also been the lawyer for US President Donald Trump. Robert informed the court about the agreement to accept notice on behalf of Adani. No direct allegations of bribery against Adani Adani Green Energy has clarified that the company is not a party in this matter. The company states that Gautam Adani and Sagar Adani have not been charged with any bribery or corruption allegations under the US Foreign Corrupt Practices Act (FCPA). This entire matter is of civil nature, not criminal. The company also stated that this will not affect their operations and business will continue as usual. What is ‘Service of Notice’? Whenever a case is filed against any person or company in a foreign court, they must first be officially notified. This is called ‘service’. If the defendant is in another country, international treaties like the Hague Convention need to be used, which takes a long time. With Adani’s lawyers accepting the notice themselves, this legal process will now speed up.