NEW DELHI: The US Securities and Exchange Commission (SEC) will need to use formal diplomatic protocols to serve summons on Adani Group Founder Gautam Adani and his nephew, Sagar Adani, in a case involving alleged payoffs of $265 million (Rs 2,200 crore) to secure solar energy contracts. The SEC lacks jurisdiction to directly summon foreign nationals and must channel its request through the Indian Embassy in the US, sources said.
Diplomatic hurdles and established protocols
The procedure is governed by the 1965 Hague Convention and the Mutual Legal Assistance Treaty between India and the US.Officials familiar with the matter clarified that summons cannot simply be mailed but must adhere to these formalities, which could delay the process.
The SEC’s summons, dated November 21 and filed in a New York court, mandates a response within 21 days of receipt. “If you fail to respond, judgment by default will be entered against you,” the notice warns.
Allegations and legal proceedings
Gautam Adani, his nephew Sagar, and others, including Cyril Cabanes of Azure Power Global, face accusations of paying bribes between 2020 and 2024 to secure lucrative solar contracts. These deals allegedly promised $2 billion in profits over 20 years.
The indictment, unsealed on Wednesday, alleges the Adani Group raised $2 billion in loans and bonds, including from US firms, based on misleading anti-bribery claims. Prosecutors say the inquiry, initiated in 2022, encountered obstruction.
“As alleged, the defendants orchestrated an elaborate scheme to bribe Indian government officials to secure contracts worth billions of dollars and… lied about the bribery scheme as they sought to raise capital from U.S. and international investors,” said US Attorney Breon Peace.
“My office is committed to rooting out corruption in the international marketplace and protecting investors from those who seek to enrich themselves at the expense of the integrity of our financial markets,” he added.
Adani Group denies allegations
The Adani Group has strongly denied the charges. “The Adani Group has always upheld and is steadfastly committed to maintaining the highest standards of governance, transparency, and regulatory compliance across all jurisdictions of its operations,” the company stated.
The group assured stakeholders and partners of its compliance with laws and indicated its intention to explore all legal avenues to counter the allegations.
An indictment in the US signifies formal charges issued by a grand jury, requiring the accused to respond or face default judgment. The outcome of this high-profile case could have far-reaching implications for international business practices and investor trust.
(With inputs from agencies)
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