A US court has allowed a pre-trial conference to be held in the securities case against the Adani Group, in which billionaire Gautam Adani and his nephew Sagar Adani are seeking to have their lawsuit dismissed by the US Securities and Exchange Commission (SEC).
The U.S. District Court for the Eastern District of New York on April 7 granted the defendants’ request for a preliminary conference before filing a motion to dismiss. The order was passed by Judge Nicholas J. Garaufis, who directed both sides to hold and schedule a hearing.
The case, SEC v. Adani et al, arose from a complaint filed by the Securities and Exchange Commission in November 2024 alleging securities fraud related to a 2021 bond issuance by Adani Green Energy Ltd. The SEC has filed a lawsuit alleging that it misled investors by failing to disclose an alleged bribery scheme linked to Indian government officials, leading to the case being framed under US securities laws.
In an introductory letter, Adani’s family claimed that the US court lacked jurisdiction and that the complaint failed to prove any wrongdoing. They said that neither of them had sufficient contacts with the United States or direct participation in the bond offering.
The defendants stated that the $750 million sale of the notes was conducted outside the United States under Rule 144A and Regulation S exceptions, with the securities sold to non-U.S. underwriters and later resold in part to qualified institutional buyers.
They claimed that the SEC case was extraterritorial, as the securities were not listed in the US, the issuer was an Indian company, and the alleged misconduct occurred entirely in India. Relying on U.S. Supreme Court precedent, they claimed the regulator failed to create a “domestic transaction,” a requirement to invoke U.S. securities laws.
The SEC is not claiming any losses to investors and noted that the bonds matured and were repaid with interest in 2024, the filing stated.
The defendants also disputed allegations of a bribery scheme involving Indian officials, saying there was no credible evidence. They said the statements cited by the SEC on environmental, social and governance (ESG) commitments, anti-corruption practices and company reputation amount to unactionable corporate optimism and cannot be relied upon by investors.
They also argued that the complaint does not show that Gautam Adani approved the issuance, attended key meetings or directed any communication to US investors, nor does it prove intent to defraud.
The defendants have sought to dismiss the complaint in its entirety and have indicated their willingness to appear at the preliminary conference, which will determine whether the case will proceed to the formal motion stage.
