Indian billionaire Gautam Adani attends the 51st Gem and Jewelery Awards in Jaipur, India on November 30, 2024.
Stringer | Reuters
Shares in Adani group companies fell between 5% and 13% on Friday after court filings showed the U.S. Securities and Exchange Commission is considering subpoenaing founder Gautam Adani and his nephew Sagar Adani on bribery and fraud charges.
Indian billionaire Gautam Adani, chairman of India’s Adani Group and one of the world’s richest men, was indicted in New York federal court in November 2024 along with seven others on charges related to a massive bribery and fraud scheme.
According to court filings, the SEC asked U.S. District Judge Nicholas Garaufis in Brooklyn for permission to issue legal subpoenas against Gautam Adani, chairman of Adani Group, and Sagar Adani, executive director of Adani Green Energy. CNBC has reached out to Adani Group and the US SEC for comment.
shares of adani green energy Shares of major companies closed down nearly 14%. Adani Enterprises It closed 10.7% lower on Friday. shares of adani power It fell 5.7%.
Adani Group executives are accused of misleading U.S. and international investors about their company’s compliance with anti-bribery and anti-corruption practices for raising more than $3 billion in capital to fund these energy contracts.
India’s Ministry of Justice twice last year refused to serve subpoenas to Gautam Adani and Sagar Adani under the Hague Convention, the SEC said in court. “The Department appears to be suggesting that the SEC does not have the authority to invoke the Hague Convention or seek service of subpoenas.”
Adani and several other defendants are accused of paying more than $250 million in bribes to Indian government officials to obtain solar energy supply contracts worth more than $2 billion in profits.
