Gautam Adani, Nephew Agree To Pay $18m To Settle US Civil Fraud Case
Indian billionaire Gautam Adani and his nephew, Sagar Adani, have agreed to pay a combined $18 million to settle a civil fraud lawsuit filed against them by the United States Securities and Exchange Commission (SEC).
The proposed settlement, which is still subject to court approval, relates to allegations made by the SEC in 2024 over claims that the Adanis paid bribes to Indian officials connected to renewable energy projects and misled American investors during fundraising activities.
Under the agreement, the Adanis neither admitted nor denied the allegations brought against them by the US regulator.
The settlement also includes restrictions preventing them from violating key US anti-fraud laws tied to securities fraud, investor deception, and market manipulation in the future.
Following news of the settlement, shares of several Adani Group companies recorded gains on Friday as investors reacted positively to the development.
The SEC had previously alleged that Adani Green Energy raised approximately $750 million from investors, including about $175 million from US-based investors, while allegedly providing misleading information regarding compliance with anti-bribery regulations.
The Adani Group has consistently denied wrongdoing and described the allegations as baseless.
Gautam Adani, founder of the Adani Group, is one of India’s wealthiest businessmen with business interests spanning energy, airports, logistics, infrastructure, and renewable energy.
Separate reports from international media outlets including The New York Times, Reuters, and Bloomberg also indicated that the US Department of Justice may be moving toward dropping related criminal fraud charges against Adani.
According to the reports, Adani recently hired a new legal team led by prominent American lawyer Robert Giuffra Jr, who has previously represented US President Donald Trump in legal matters.
Reports further claimed that Adani’s legal representatives argued that the businessman planned to invest about $10 billion in the United States and create thousands of jobs.
The reported developments come amid suggestions that US authorities may be reassessing the prosecution of foreign bribery-related cases under the current administration.
Neither the US Department of Justice nor the Adani Group had officially commented on the reports at the time of filing this report.
