A civil securities lawsuit filed by the US Securities and Exchange Commission (SEC) against Adani Group Chairman Gautam Adani has been temporarily paused due to the ongoing US federal government shutdown. The pause comes as SEC attorneys have been furloughed and are unable to work on active cases.
According to Bloomberg, the SEC accuses Adani and several associates of violating US securities laws by making false and misleading statements about Adani Green Energy Ltd. The civil suit runs parallel to a criminal case filed by US prosecutors in Brooklyn, who indicted Gautam Adani in November for allegedly orchestrating a $250 million bribery scheme to secure solar energy contracts in India.
The five-count indictment also names Adani’s nephew, Sagar R. Adani, and Vneet S. Jaain, executives at Adani Green Energy Ltd., along with five other individuals, for allegedly violating the US Foreign Corrupt Practices Act (FCPA).
In a court filing dated October 10, the SEC said its attorney handling the case was unavailable due to furlough, prompting US Magistrate Judge James Cho to grant a pause in proceedings. The court has ordered the SEC to submit a status report within 30 days after the shutdown ends.
While the civil case is paused, the criminal proceedings remain unaffected. None of the defendants have yet appeared in court.
The Adani Group has rejected the allegations as “baseless.” In June, Gautam Adani stated, “Despite all the noise, the facts are that no one from the Adani Group has been charged with violating the FCPA or conspiring to obstruct justice.”
The SEC’s complaint claims that Adani and his associates promised over $250 million in bribes to Indian officials in 2021 to win solar contracts, and later raised about $175 million from US investors without disclosing the misconduct. However, the SEC’s efforts to serve legal summons in India have faced delays due to procedural hurdles under the Hague Service Convention.
With the SEC case on hold, attention may now shift toward diplomatic and procedural steps once the US government resumes operations. However, the ongoing criminal case ensures that the controversy will continue to affect Adani’s global reputation and investor confidence.
