New York: Billionaire Gautam Adani and his nephew Sagar Adani have secured relief from a US court, which has accepted their plea to dismiss the securities fraud lawsuit filed by the US Securities and Exchange Commission (SEC), noting that the case falls outside US jurisdiction and does not establish any wrongdoing.
The news agency PTI earlier reported that in a pre-motion letter submitted ahead of a proposed April 30 filing, the Adanis, through their legal representatives, argued that the SEC's claims linked to a 2021 bond issuance by Adani Green Energy Limited are legally untenable on several grounds.
The SEC had initiated legal action against the Adanis in November 2024, accusing them of misleading investors by failing to disclose an alleged bribery scheme involving Indian state officials, invoking provisions of US securities laws.
PTI reported that the Adanis have challenged the court's personal jurisdiction, asserting that neither had sufficient ties to the United States nor direct participation in the bond offering in question.
The filing states that the USD 750 million bond sale was executed outside the United States under Rule 144A and Regulation S exemptions, with securities initially sold to non-US underwriters and only later partially resold to qualified institutional buyers.
It further maintains that the complaint does not claim Gautam Adani approved the issuance, attended crucial meetings, or directed any efforts toward US investors.
The Adanis have also argued that the SEC's case represents an overreach, as the securities were not listed in the US, the issuing entity is Indian, and the alleged misconduct took place entirely within India.
They cited US Supreme Court precedent to contend that the SEC has failed to demonstrate any "domestic transaction," a key requirement for applying US securities laws.
Additionally, the filing notes that no investor losses have been alleged, highlighting that the bonds matured and were fully repaid with interest in 2024.
The Adanis have also denied the bribery allegations, stating that there is no credible evidence to support them.
The defence further argued that statements referenced by the SEC-related to ESG commitments, anti-corruption measures, and corporate reputation-constitute non-actionable "puffery," or general corporate optimism that investors cannot reasonably rely upon.
They also said the SEC has not linked either defendant to specific misleading statements or demonstrated any intent to defraud.
The defendants have sought complete dismissal of the case and indicated their willingness to appear for a pre-motion conference if required, as concluded by PTI.