whatsapp

Adani Group Stocks Slide as US SEC Seeks to Question Founder Over Fraud Allegations

  • 0
  • 285
/media/GTN__Co2EI32.webp © Adani Group Stocks Slide as US SEC Seeks to Question Founder Over Fraud Allegations

Shares of several Adani Group companies fell sharply on Friday after court filings revealed that the U.S. Securities and Exchange Commission is seeking permission to issue summons to group founder Gautam Adani and two others in connection with fraud and bribery allegations.

Adani Group stocks declined between 5% and 14% during the session, reflecting investor concern over the potential legal fallout.

Shares of Adani Green Energy plunged nearly 14%, while those of flagship firm Adani Enterprises closed 10.7% lowerAdani Power shares ended the day down around 5.7%.

SEC Seeks Court Approval to Issue Summons

According to court documents, the SEC has approached Nicholas Garaufis, a US District Judge in Brooklyn, seeking approval to send legal summons to Gautam Adani and Sagar Adani, an executive director at Adani Green Energy.

The move follows a November 2024 indictment in New York federal court, in which Gautam Adani and seven other individuals were charged in connection with an alleged large-scale bribery and fraud scheme.

The SEC has said it is attempting to question the Adani executives over accusations that they misled US and international investors about compliance with anti-bribery and anti-corruption standards while raising more than $3 billion to fund energy projects.

Bribery and Investor Misrepresentation Allegations

US prosecutors allege that Adani and other defendants paid more than $250 million in bribes to Indian government officials to secure solar energy supply contracts, which are said to have generated over $2 billion in profits.

The executives are accused of concealing these payments while marketing Adani Group securities to investors, including those in the United States.

CNBC reported that it has reached out to both the Adani Group and the SEC for comment. No immediate response was available.

Service of Summons Faces Legal Hurdles

Court filings also show that India’s Ministry of Law and Justice declined on two occasions in 2025 to serve the summons on Gautam Adani and Sagar Adani under the Hague Convention, according to the SEC.

“The Ministry appeared to suggest that the SEC lacks authority to invoke the Hague Convention or seek service of the Summonses,” the regulator told the court.

The latest developments add further legal uncertainty around the Adani Group, which has faced increased scrutiny from global regulators and investors over governance and disclosure practices.

Market Reaction Reflects Rising Risk Concerns

The sharp sell-off in Adani stocks underscores heightened investor sensitivity to regulatory and legal risks, particularly those involving US authorities. Analysts say further volatility is likely as the case progresses and as markets assess potential financial and reputational impacts on the conglomerate.

Related Posts
© Portugal Food Basket Hits Record High, But Iran War Not Yet Driving Prices

Portugal Food Basket Hits Record High, But Iran War Not Yet Driving Prices

Food prices in Portugal have reached their highest level since monitoring began, pushing the cost of a basic supermarket basket to a record level. However, consumer watchdogs say the recent increase c...

  • 357
© US Declines to Impose High Tariffs on Chinese Battery Materials

US Declines to Impose High Tariffs on Chinese Battery Materials

Washington — The United States will not impose steep duties on imports of a key battery component from China after a federal trade agency ruled that such imports had not significantly harmed the devel...

  • 398
© Record Emergency Oil Release Signals Middle East War Could Last Months

Record Emergency Oil Release Signals Middle East War Could Last Months

Plans for the largest emergency oil release in history suggest that energy markets are preparing for a prolonged conflict in the Middle East. The International Energy Agency (IEA) announced that its 3...

  • 371
© Iran Continues Oil Shipments to China Through Strait of Hormuz Despite War

Iran Continues Oil Shipments to China Through Strait of Hormuz Despite War

Iran has continued exporting crude oil to China through the Strait of Hormuz despite ongoing conflict in the region that has disrupted shipping through the critical waterway. Since the war began on Fe...

  • 135
© Oil Prices Slide After Trump’s Iran–Hormuz Comments

Oil Prices Slide After Trump’s Iran–Hormuz Comments

Global oil prices fell sharply after investors reacted to remarks from U.S. President Donald Trump regarding the ongoing conflict with Iran and the future of oil shipments through the strategically im...

  • 172
© FDA Vaccine Chief Vinay Prasad to Step Down in April

FDA Vaccine Chief Vinay Prasad to Step Down in April

The head of vaccines and biologic medicines at the U.S. Food and Drug Administration (FDA) will step down from his position next month after several controversial regulatory decisions....

  • 364
© Oil Prices Surge 35% in Record Weekly Rally as Middle East Conflict Disrupts Supply

Oil Prices Surge 35% in Record Weekly Rally as Middle East Conflict Disrupts Supply

Global oil markets experienced a historic surge this week, with U.S. crude posting the largest weekly gain in futures trading history as escalating tensions in the Middle East triggered concerns over ...

  • 162
© OpenAI’s Altman Says Pentagon AI Deal Was ‘Opportunistic and Sloppy’

OpenAI’s Altman Says Pentagon AI Deal Was ‘Opportunistic and Sloppy’

Washington - OpenAI Chief Executive Sam Altman has admitted that the company “shouldn’t have rushed” its recent agreement with the U.S. Department of Defense, saying the timing and presentation of the...

  • 224
© Drone Strike Halts Saudi Arabia’s Largest Oil Refinery

Drone Strike Halts Saudi Arabia’s Largest Oil Refinery

Riyadh - Saudi Arabia’s largest oil refinery has temporarily stopped operations after a drone strike caused damage to key infrastructure, authorities confirmed. The incident occurred early Wednesday w...

  • 163
© U.S.-Israel Strikes Iran: What We Know as Markets Brace for Turmoil

U.S.-Israel Strikes Iran: What We Know as Markets Brace for Turmoil

The Middle East has entered a new phase of conflict after the United States and Israel launched major strikes on Iranian targets over the weekend, raising fears of wider instability and global market ...

  • 188
Commnets 0
Leave A Comment