US Securities and Exchange Commission Seeks India’s Help in Adani Group Founder’s Investigation
The US Securities and Exchange Commission (SEC) has requested Indian authorities for assistance in its investigation of Adani Group founder Gautam Adani and his nephew, Sagar Adani, over alleged securities fraud and a US$265-million bribery scheme. The regulator made the request in a court filing yesterday.
Securities and Exchange Commission’s Request
The SEC has been trying to serve its complaint on the founder and his nephew, but they are not in US custody and are currently in India. The regulator has sought help from India’s law ministry to facilitate the service of the complaint. In the court filing, the SEC stated, "The SEC has requested assistance… under the Hague service convention."
Adani Group’s Response
Adani Group and India’s law ministry have not commented on the matter. However, the company has previously denied the allegations, calling them "baseless" and vowing to seek "all possible legal recourse."
Prime Minister’s Statement
Last week, Prime Minister Narendra Modi said he did not discuss the Adani case with US President Donald Trump during his visit to Washington, describing it as an individual issue never discussed by leaders. This statement has sparked controversy, with India’s opposition Congress party calling for Adani’s arrest and accusing Modi of shielding him or favoring him in deals in the past. Modi’s party and Adani have denied the charges.
Background of the Case
Last year, federal prosecutors in Brooklyn unsealed an indictment accusing Adani of bribing Indian officials to convince them to buy electricity produced by Adani Green Energy, a subsidiary of his Adani Group. The indictment also alleged that Adani misled US investors by providing reassuring information about the company’s anti-graft practices.
Adani Green Energy’s Response
In January, Adani Green Energy said it had appointed independent law firms to review the US indictment.
Conclusion
The SEC’s request for Indian authorities’ assistance in the Adani Group founder’s investigation is a significant development in the case. The controversy surrounding Adani’s alleged wrongdoing has sparked a heated debate in India, with the opposition party calling for his arrest and the government denying the charges. The outcome of the investigation will have significant implications for Adani Group’s reputation and the Indian government’s relationship with the US.
FAQs
- What is the US Securities and Exchange Commission’s (SEC) investigation about?
The SEC is investigating Adani Group founder Gautam Adani and his nephew, Sagar Adani, over alleged securities fraud and a US$265-million bribery scheme. - What is the SEC’s request to Indian authorities?
The SEC has requested Indian authorities’ help in serving its complaint on the founder and his nephew, who are currently in India. - What is Adani Group’s response to the allegations?
Adani Group has denied the allegations, calling them "baseless" and vowing to seek "all possible legal recourse." - What is the background of the case?
The case involves allegations that Adani bribed Indian officials to buy electricity produced by Adani Green Energy and misled US investors about the company’s anti-graft practices.