MUMBAI: The U.S. Securities and Exchange Commission (SEC) has issued summons to Gautam Adani, founder and chairman of the Adani Group, and his nephew Sagar Adani, executive director of Adani Green Energy Ltd, in connection with a bribery case. The summons were issued following allegations that the Adani Group paid $265 million (approximately Rs 2,200 crore) in bribes to Indian government officials to secure lucrative solar energy contracts.

The SEC's notice, dispatched through the New York Eastern District Court issued on November 21, 2024, sent to the Adanis’ respective residences in Ahmedabad, requires the Adanis to respond within 21 days (not counting the day you received it) under Rule 12 of the Federal Rules of Civil Procedure.

The notice is repoted stating that failure to do so could result in a default judgment against them. The allegations suggest that the bribes were paid between 2020 and 2024 to obtain contracts expected to generate $2 billion in profits over 20 years. The notice according to a report by the newsagency PTI says, "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."

The SEC has charged Adani and seven others including Sagar Adani, along with Cyril Cabanes, an executive at Azure Power Global Ltd, for their roles in bribery scheme in which it is alledged that the Group paid approximately around Rs 2,200 crore($265 million) in bribes to Indian government officials between 2020 and 2024 to secure lucrative solar energy contracts.

The SEC's complaint alleges that the bribes were paid to officials in Andhra Pradesh, Odisha, Chhattisgarh, Tamil Nadu, and Jammu & Kashmir to obtain contracts from the Solar Energy Corporation of India. These contracts were expected to generate $2 billion in profits over 20 years2. The Adani Group raised $175 million from U.S. investors during this period, while Azure Power's stock was traded on the New York Stock Exchange.

The SEC has accused the Adanis of misrepresenting the company's anti-bribery compliance program and making false statements about their commitment to anti-corruption efforts. The indictment also claims that the Adani Group concealed the bribery investigation while raising funds from U.S. investors2.

The Adani Group has strongly denied the charges, stating that they are committed to maintaining the highest standards of governance, transparency, and regulatory compliance. They have indicated their intention to pursue all available legal remedies to contest the allegations.