finance
Gautam Adani and Nephew Pay $18 Million to Settle SEC Civil Fraud Allegations
Indian billionaire Gautam Adani and his nephew Sagar Adani have reached a settlement with the U.S. Securities and Exchange Commission over allegations they misled investors in connection with a bribery scheme tied to Indian solar contracts. Gautam Adani will pay a $6 million penalty while Sagar Adani will pay $12 million.
May 15, 5:31 AM·2m read3 sources
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Gautam Adani and his nephew Sagar Adani have agreed to pay a combined $18 million to settle a U.S. Securities and Exchange Commission civil lawsuit. Under the settlement, Gautam Adani will pay a $6 million penalty while Sagar Adani will pay $12 million. Both men consented to entry of a final judgment without admitting or denying the allegations made in the civil complaint.
The company at the center of the allegations, Azure Power Global, stated it is not part of these proceedings and no charges have been brought against it. Shares of the group's flagship company and the renewable energy unit at the center of the case pared early losses on Friday after regulators sought court approval for the settlement. Both stocks remain above their 52-week highs.
The SEC's civil complaint, filed alongside executives at Azure Power Global, centered on allegations tied to solar energy contracts awarded by the Indian government. A New York federal court indicted Gautam Adani and seven others in November 2024 on criminal charges.
The indictment accused the defendants of misleading investors and banks to raise billions of dollars while obstructing justice. Although the alleged conduct occurred in India, the defendants were charged in Brooklyn federal court because the fundraising efforts took place in the United States.
The Adani Group has denied the allegations, calling them baseless. In a meeting at the Justice Department's headquarters in Washington last month, Adani's legal team argued that prosecutors lacked basic evidence. Earlier this year, the SEC sought permission from a U.S. District Judge in Brooklyn to serve a legal summons on Adani after India's Law and Justice ministry twice refused to deliver it last year.
The case stemmed from alleged bribery tied to Indian solar contracts. The settlement resolves the SEC civil action but does not address all lingering questions from the criminal probe. Easing legal uncertainty in the U.S. could help reopen international capital markets for the group and accelerate its renewable and infrastructure expansion plans.
