Adani wins US court nod to challenge SEC fraud case, citing lack of US jurisdiction

Billionaire Gautam Adani has won a key procedural victory in the United States as a New York federal judge agreed to schedule a hearing on his effort to dismiss a Securities and Exchange Commissio n (SEC) fraud case . The SEC, the US government agency responsible for regulating securities markets and protecting investors, had alleged that Adani and his nephew Sagar Adani orchestrated a USD 250 million bribery scheme to secure solar energy contracts in India, allegedly concealing the scheme from US investors .

The Adanis have denied all allegations, stressing that no Adani entity or executive has been charged under the US Foreign Corrupt Practices Act , and that Adani Green Energy , the renewable arm involved in raising funds, is not a party to the proceedings.

In their filings, the Adanis argued that the court lacks personal jurisdiction , as neither had sufficient contacts with the US or direct involvement in the USD 750-million bond sale , which was conducted outside the US under SEC exemptions. They also highlighted that the bonds matured in 2024 with full repayment , and no investor losses occurred .

The legal team further challenged the SEC’s extraterritorial claims , pointing out that the bonds were not listed in the US , the issuer is Indian, and the alleged misconduct occurred entirely in India. Statements cited by the SEC on ESG (Environmental, Social, and Governance) and anti-corruption practices, they argued, are non-actionable “puffery” .

The Brooklyn court’s order allows the Adanis to argue for dismissal before a protracted trial or discovery , potentially ending the SEC’s claims early. The defendants are set to move to dismiss by April 30, 2026 , with a pre-motion conference to follow. Represented by Sullivan & Cromwell LLP and Nixon Peabody LLP, the Adanis continue to raise global funds, including from investors like BlackRock, despite ongoing litigation.