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U.S. Securities and Exchange Commission (SEC) has asked a federal court for permission to bypass the Indian government and directly serve legal summons to billionaire Gautam Adani and his company, Adani Group. The SEC wants to use email and international courier instead of the usual diplomatic route under the Hague Convention, which it says is too slow and uncertain.
This legal move is part of an investigation into possible violations of U.S. securities laws. The SEC is probing whether Adani Group and its Mauritius-based investors failed to properly disclose their ownership stakes in U.S.-listed companies, potentially misleading investors. The regulator is seeking financial penalties and other remedies.
The case stems from a 2023 report by short-seller Hindenburg Research, which accused the Adani Group of stock manipulation and accounting fraud. Adani has denied all allegations, calling them politically motivated.
The SEC’s court filing names Adani Group, its founder Gautam Adani, and two Mauritius-based entities Emerging Market Investment DMCC and Gardenia Trade and Investment. The regulator is seeking civil penalties, injunctions, and other relief, though the exact monetary amount has not been disclosed in the filing.
If approved, this could set a precedent for how U.S. regulators deal with foreign companies, especially those with complex offshore structures.
