US SEC does not have the authority to summon a foreign citizen, notice will be sent to Adani through ‘proper channel’

The US Securities and Exchange Commission (SEC) will have to summon Adani Group founder and chairman Gautam Adani and his nephew Sagar through proper diplomatic channels in connection with the alleged payment of US$265 million (Rs 2,200 crore) to a foreign national. He has no authority to send summons directly. The SEC wants Adani to clarify its stand on allegations of paying bribes to get lucrative solar power contracts. But two sources familiar with the matter said the request would have to follow the established protocol of sending it through the Indian Embassy in the US and follow other diplomatic formalities.

SEC has no authority over foreign nationals

The US SEC has no jurisdiction over foreign citizens and cannot send them anything by mail. The 1965 Hague Convention and the Mutual Legal Assistance Treaty between India and the US govern such matters. These clearly outline the established procedure to be followed in such requests. He said the subpoena, which is part of a legal document filed by the SEC in a New York court. It will take some time before it is actually handed over to Adani.

No summons has been served yet

The US SEC said in a November 21 notice via the New York Eastern District Court that within 21 days of service of this subpoena (not including the day you received it), you must serve on the plaintiff (SEC) a copy of the attached complaint. An answer or a motion must be submitted under Rule 12 of the Federal Rules of Civil Procedure. It says that if you fail to answer, judgment will be entered against you by default for the relief sought in the complaint. You must also file your answer or motion with the court.

Seven other defendants including Gautam Adani and his nephew Sagar, who is a director at Adani Green Energy Ltd, the group’s renewable energy arm. Who allegedly agreed to pay bribes of approximately USD 265 million to Indian government officials between 2020 and 2024 in order to obtain lucrative solar power supply contracts. The terms of which are expected to yield $2 billion in profits over 20 years, the indictment unsealed in a New York court on Wednesday.

denied the allegations

The Port-to-Energy group has denied the allegations and said it will seek all possible legal resources. Adani Group has always been committed to maintaining the highest standards of governance, transparency and regulatory compliance across all jurisdictions in which it operates. We assure our stakeholders, partners and employees that we are a law abiding organization that is fully compliant with all laws.

An indictment in the US is basically a formal written charge that is initiated by a prosecutor and issued by a grand jury against a party charged with a crime. A formal notice is given to the person charged to answer. That person or persons may then hire a defense attorney to defend them. Prosecutors said the investigation began in 2022, and found that the investigation was hindered.

What did US Attorney Brian Peace say?

Prosecutors allege that Adaan Group raised US$2 billion in loans and bonds, including from US firms, based on false and misleading statements related to the firm’s anti-bribery practices and policies, as well as reports of bribery investigations. U.S. Attorney Brian Peace said in a statement announcing the charges on Wednesday that as charged, the defendants orchestrated an elaborate scheme to bribe Indian government officials to secure billions of dollars in contracts and participated in the bribery scheme. Lied about, because they were trying to raise capital from American and international investors.

He further said that my office is committed to rooting out corruption in international markets and protecting investors from those who seek to enrich themselves at the expense of the integrity of our financial markets.