Trouble for Adanis? US SEC Still Chasing Gautam Adani and Nephew Sagar Adani in $265 Million Fraud Case

On June 27, 2025, the United States (U.S.) Securities and Exchange Commission (SEC) informed a federal court in New York that it has not yet successfully served legal summons to Indian billionaire Gautam Adani and his nephew Sagar Adani. This development is part of a civil securities fraud case filed by the SEC in 2024.

As per a report of WION, the SEC stated that it continues to pursue the service of the summons and complaint through official international channels, specifically under the Hague Service Convention-a multilateral treaty used for serving judicial documents abroad.

According to the SEC's letter submitted to the court, it has been in communication with India's Ministry of Law and Justice (MOLJ) regarding efforts made by Indian judicial authorities to serve the documents to the Adanis.

The SEC emphasised that the defendants are based in India, and that multiple attempts are being made to execute the service process legally through India's legal infrastructure under the Hague framework. The SEC's filing further clarified that, as of the latest update, Indian authorities have not yet delivered the legal summons to either Gautam Adani or Sagar Adani.

The SEC also pointed out a critical limitation-it does not possess the jurisdiction to directly serve legal documents to foreign nationals residing outside the United States. Instead, it must operate through diplomatic and treaty-based mechanisms such as the Hague Convention on the Service Abroad of Judicial and Extrajudicial Documents in Civil or Commercial Matters. The Commission confirmed that it would file its next progress update with the court by August 11, 2025.

Background of Case Against Adani

The civil lawsuit revolves around allegations of a $265 million illicit payment intended to secure valuable renewable energy contracts. The original complaint, filed on November 20, 2024, accuses both Gautam and Sagar Adani of violating U.S. securities laws.

According to the SEC, the Adanis misled American investors by disseminating fraudulent and deceptive information related to Adani Green Energy's bond issuance in September 2021. The SEC's reference to Rule 4(f) of the Federal Rules of Civil Procedure highlights the legal framework it is using to pursue service in foreign jurisdictions.

This rule, in conjunction with international agreements such as the Hague Convention, allows for extended timelines in serving individuals located abroad-as long as persistent and reasonable efforts are being made.