Adani SEC Case: Why The Delay In Key Submissions?

Gautam Adani and Sagar Adani seek more time in their US securities fraud case, jointly requesting an extension from a US court to file key submissions, as they fight allegations of misleading investors.

Photograph: Andrew Kelly/Reuters

IMAGE: Photograph: Andrew Kelly/Reuters

Key Points

The US SEC and Gautam and Sagar Adani have jointly requested more time to file submissions in their securities case.
The Adanis are seeking dismissal of the fraud lawsuit, arguing it's an impermissible application of US law.
The SEC alleges the Adanis misled investors by not disclosing an alleged bribery scheme tied to Indian officials.
The proposed schedule includes a motion to dismiss by June 8 and an SEC response by August 7.

The US Securities and Exchange Commission and Indian businessmen Gautam Adani and Sagar Adani have jointly requested a US court for more time to file key submissions in a civil securities case, proposing a revised schedule for motions and responses.

In a filing before the US District Court for the Eastern District of New York, the parties said they had conferred in line with the court's April 7 directive and agreed on a new timeline, which has been submitted for approval to Judge Nicholas G Garaufis.

Adani's Defence Against SEC Allegations

The SEC had sued Adani Group founder Gautam Adani and his nephew, Sagar, in November 2024, alleging they had misled investors by failing to disclose an alleged bribery scheme tied to Indian state officials, framing the case under US securities laws.

Denying all allegations, the two, through their lawyers, on April 7, filed a pre-motion letter ahead of a planned April 30 motion, seeking dismissal of a fraud lawsuit, arguing the case represents an impermissible extraterritorial application of US law and fails for lack of personal jurisdiction.

Proposed Timeline For The Adani SEC Case

Under the proposed schedule, the defendant's (Adanis) motion to dismiss would be due by June 8, the SEC's amended complaint or opposition by August 7, and the defendants' reply by September 21. The parties also suggested May 20, May 22 or May 29 as potential dates for a pre-motion conference, subject to the court's availability.

The request follows a pre-motion letter filed by the defendants on April 7, after which the court directed both sides to confer on next steps.

Key Arguments In The Motion To Dismiss

In their anticipated motion to dismiss, Adanis are expected to argue that the court lacks jurisdiction because the claims concern conduct outside the United States, that the alleged statements are too general to be relied upon by investors, and that they were not involved in a USD 750 million bond offering in 2021.

The SEC filed the lawsuit in November 2024, alleging violations of US securities laws. An earlier briefing schedule approved in January set April 30 as the deadline for the motion to dismiss, June 29 for the SEC's response and August 13 for the defendants' reply.

The Adanis have denied the allegations and said they will seek dismissal of the case. Gautam Adani is represented by Sullivan & Cromwell LLP, while Sagar Adani is represented by Nixon Peabody LLP and Hecker Fink LLP. The SEC is represented by its New York regional office.

Under Indian law, bribery of public officials can attract charges under the Prevention of Corruption Act. The Enforcement Directorate could also investigate related money laundering offences if any illegal proceeds were routed through India. The outcome of this case in the US could influence regulatory scrutiny in India.

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