US Court Approves Hearing In Adani’s Challenge To SEC Case

A US court has granted a request from Gautam Adani and co-defendants to hold a pre-motion conference ahead of their planned move to dismiss the Securities and Exchange Commission (SEC) complaint.

The court directed both parties to confer and coordinate with its deputy to schedule the hearing.

Earlier, legal representatives for Gautam Adani and Sagar Adani informed the Eastern District of New York that they intend to file a motion to dismiss by April 30.

They confirmed their readiness to participate in a pre-motion conference, outlining preliminary grounds for seeking dismissal of the case.

The defendants argued that the court lacks personal jurisdiction and that the SEC applied US law extraterritorially.

They said the alleged misstatements are too vague to be materially misleading and therefore not actionable.

Their lawyers stated that Adani Green Energy Ltd conducted a $750 million bond sale in 2021 outside the US through non-US underwriters, with only incidental resale to US investors, and without AGEL’s involvement.

They added that the defendants do not operate in the US and that the complaint fails to show any legal violation.

The SEC has alleged that Gautam Adani, Sagar Adani, and others were involved in a bribery scheme linked to solar contracts in India.

However, the defence contended that the case involves Indian entities, securities not registered in the US, and actions that occurred entirely outside American jurisdiction.

Lawyers representing the defendants also pointed out that the SEC has not established that the underwriters were US institutions or that the agreements governing the transactions were subject to US law.

With these arguments, the defendants aim to secure dismissal of the case at an early stage.

Also Read: Gautam Adani Calls SEC Allegations Legally Flawed; Seeks Court Dismissal