US SEC Has No jurisdiction To Summon Foreign National; Adani Notice To Go Via ‘Proper Channel’

The US Securities and Exchange Commission (SEC) cannot directly summon Adani Group Founder Gautam Adani and his nephew Sagar. The SEC must follow diplomatic channels to serve the summons. The summons will go through the Indian Embassy in the US. This follows protocols under the 1965 Hague Convention and the Mutual Legal Assistance Treaty between India and the US.

Diplomatic Process Will Delay Summons

Sources say the SEC’s summons, filed in a New York court, cannot be served directly. It will take time before the notice reaches the Adanis. No summons have been served yet. The SEC’s November 21 notice requires a response within 21 days of receiving it. The notice warns of a default judgment if they fail to reply.

Bribery Allegations and SEC Charges

Gautam Adani, Sagar, and six others face accusations of paying USD 265 million in bribes to Indian officials between 2020 and 2024. The bribes allegedly secured profitable solar contracts. The SEC has also charged them with involvement in a massive bribery scheme. The Adani Group denied all allegations. It reaffirmed its commitment to transparency and governance.

The US investigation, which began in 2022, claims the Adani Group raised USD 2 billion in loans and bonds through false statements about its anti-bribery practices. Prosecutors vowed to combat corruption and protect investors from misleading practices.

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