Bombay
: The securities fraud trial against Adani Group chairman Gautam Adani and his nephew Sagar Adani — accused of paying bribes to unnamed Indian government officials and defrauding U.S. investors — has broken a year-long political stalemate and cleared the way for a potentially lengthy legal battle in a U.S. court.
Attorneys representing Adanis and the U.S. Securities and Exchange Commission (SEC) reached an agreement that allows the regulator to serve a subpoena and a copy of the complaint on Adanis through its U.S.-based counsel, according to court filings filed Friday.
The two sides also agreed to an extended legal timetable, giving them more than six months to file motions and objections in a staggered manner.
Emails seeking comment from the Adani Group, U.S. attorneys Gautam and Sagar Adani and the SEC remained unanswered at the time of publication.
Why did the case stop?
The SEC opened proceedings against two Adani Group promoters in November 2024, but the case has remained stuck for more than a year after the US regulator said the Indian government had twice rejected its requests to serve subpoenas, citing procedural flaws.
Under US law, summonses and complaints must be served on defendants to formally notify them of the case. The international service is governed by the Hague Convention, under which India’s Ministry of Legal Affairs – part of the Ministry of Law and Justice – acts as a nodal authority for routing legal documents from foreign regulators to Indian citizens.
Changing the courtroom
With the Adanis agreeing to court service through their lawyers, the case will now move from the diplomatic arena to the courtroom, legal experts said.
“By accepting the trial through their U.S. counsel, the defendants have effectively circumvented the Hague Convention procedural deadlock that had previously stalled the case,” said Ankita Singh, founder of law firm Sarvaank Associates.
The agreement to allow service of process does not mean the Adanis have agreed to be tried in the US. They have reserved their right to defend against personal jurisdiction because they are citizens of India, according to the court filing.
Adanis’ lawyers will now have 90 days to file an answer or file motions to dismiss the complaint, according to the agreement between the parties. If Adanis files a motion to dismiss the case, the SEC will have 60 days to amend its complaint or file an objection to the motion. Adanis will then have an additional 45 days to file any response to the SEC filing.
We have a long way to go
Russell A. Stamets, partner at Delhi-based law firm Circle Of Counsels, said such scheduling agreements are common in complex cross-border cases, helping to make proceedings more predictable.
“The time frame for responding to these allegations appears to be too long given that the allegations have been filed since November 2024. This undoubtedly reflects the sensitive political nature of the parties involved,” he said.
