US Summons for Adani
• Alleged $265M Bribery: Adani Faces Legal Heat
• India’s Court to Deliver US SEC Notice to Adani
Unmesh Gujarathi
Sprouts News Exclusive
The Indian government has initiated legal procedures to serve a summons from the U.S. Securities and Exchange Commission (SEC) to billionaire Gautam Adani, concerning allegations of securities fraud and a $265 million bribery scheme. The SEC’s summons, issued under the Hague Service Convention—which precludes direct service of legal documents to defendants in India—necessitates that Adani or his legal representative appear before a U.S. court.
In response, India’s federal Ministry of Law has petitioned a district court in Ahmedabad, Gujarat—Adani’s home state—to facilitate the delivery of the summons, as indicated in a letter dated February 25. Legal experts note that compliance with this service would obligate Adani to respond to the proceedings in the United States.
Also Read: Kapil Dedhia Arrested in New India Bank Scam by EOW.
The Adani Group, led by Indian billionaire Gautam Adani, has been involved in several controversies over the years. Here are some of the most significant ones:
1. Hindenburg Report (2023)
– In January 2023, U.S.-based short-seller Hindenburg Research released a report accusing Adani Group of stock manipulation, accounting fraud, and improper use of offshore tax havens.
– The report led to a massive decline in Adani Group’s stock prices, wiping out billions of dollars in market value.
– The Adani Group denied the allegations, calling them baseless and an attack on India’s economic growth.
2. Environmental Concerns
– The Adani Group has faced criticism for its coal mining and infrastructure projects, particularly in Australia and India.
– The Carmichael coal mine in Australia, one of the world’s largest, has been opposed by environmentalists due to concerns over carbon emissions, water usage, and potential damage to the Great Barrier Reef.
– Activists and indigenous groups have also protested against Adani’s projects in India, citing deforestation and displacement of local communities.
3. Political Connections and Favoritism Allegations
– Critics have alleged that Adani Group has benefited from close ties with Indian Prime Minister Narendra Modi and the ruling Bharatiya Janata Party (BJP).
– The group has secured major infrastructure contracts, including ports, airports, and energy projects, leading to accusations of crony capitalism.
4. Land Acquisition Disputes
– The company has faced protests over alleged forcible land acquisitions for its projects in states like Gujarat, Jharkhand, and Odisha.
– Farmers and tribal communities have accused Adani of acquiring land at unfair prices and disregarding environmental regulations.
5. Stock Market and SEBI Investigations
– Following the Hindenburg allegations, India’s market regulator, SEBI (Securities and Exchange Board of India), launched an investigation into Adani Group’s financial dealings.
– The Supreme Court of India also looked into the matter, although no major legal actions have been taken against Adani so far.
6. Alleged Overpricing of Coal Imports
– Reports have suggested that Adani Group inflated coal import prices to evade taxes and overcharge Indian consumers for electricity.
– The Directorate of Revenue Intelligence (DRI) investigated these allegations, though no conclusive action has been taken.
7. Airport Privatization Controversy
– The Indian government awarded six major airports to Adani Group despite the company having no prior experience in airport management.
– Critics argued that the bidding process was designed to favor Adani, raising concerns over transparency.
8. Data Privacy and Surveillance Allegations
– Adani Group has been accused of using its influence in sectors like telecom and infrastructure to gain access to sensitive data, though no concrete evidence has emerged.