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% lower. Adani 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.
