New York: Billionaire industrialist Gautam Adani has approached a US court seeking dismissal of a securities fraud lawsuit filed by the US Securities and Exchange Commission, arguing that the case represents an improper application of American law beyond its jurisdiction.
The SEC had filed the case in November 2024 against Adani and his nephew Sagar Adani, alleging that they misled investors by not disclosing an alleged bribery scheme involving Indian officials, framing the charges under US securities laws.
Denying the allegations, the Adanis, through their legal team, submitted a pre-motion letter ahead of a planned April 30 motion to dismiss in the Eastern District Court of New York. They argued that the case is legally flawed and lacks personal jurisdiction.
The plea centres around a $750 million bond issuance by Adani Green Energy Ltd in 2021. According to the filing, the offering was conducted outside the United States under Rule 144A and Regulation S exemptions, which allow private placements and non-US sales without SEC registration.
The defence stated that the bonds were initially sold to non-US underwriters and only later partially resold to qualified institutional buyers, with limited indirect exposure to US investors.
It further argued that neither Gautam Adani nor Sagar Adani had sufficient contact with the United States or direct involvement in the bond offering to justify the court’s jurisdiction. The plea also noted that the complaint does not allege Adani’s participation in key meetings or approval of the issuance.
Additionally, the filing contended that the SEC could not pursue charges under the Foreign Corrupt Practices Act and instead attempted to reframe the matter as a securities fraud case.
The case is expected to be heard later this month, with the motion to dismiss likely to shape the future course of the high-profile legal battle.
