New York: Shares of Adani Group companies came under intense selling pressure on Thursday after the US Securities and Exchange Commission (SEC) sought permission from a US court to serve summons directly via email to Gautam Adani and Sagar Adani, escalating legal uncertainty around an alleged $265 million bribery case.
The sharp selloff erased nearly ₹1.4 lakh crore in market capitalisation across the group’s 10 listed entities, dragging the combined valuation down to around ₹12.2 lakh crore during the session.
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According to court filings cited by Reuters, the SEC informed the court that India had rejected two earlier attempts to serve summons through formal diplomatic channels, citing procedural shortcomings. The US regulator has now requested approval to serve the summons electronically, stating that it does not expect successful service through existing mechanisms.
The development spooked investors, triggering one of the steepest single-day declines in Adani stocks since the short-seller crisis of 2023. Adani Green Energy emerged as the worst performer, closing 14% lower at ₹772 on the BSE. Flagship firm Adani Enterprises declined 11% to ₹1,862.80, while Adani Energy Solutions fell 12% to ₹814.25. Adani Ports and Special Economic Zone ended the day 7.5% lower at ₹1,307.60. Other group companies, including Ambuja Cements, ACC and Adani Total Gas, also closed in the red.
Market participants said the reaction reflected heightened sensitivity to regulatory and legal risks, particularly for conglomerates with significant exposure to overseas investors and global capital markets.
The case stems from an indictment unsealed in November 2024, which alleges that Adani Group executives were involved in a scheme to bribe Indian officials to secure power purchase agreements for electricity generated by Adani Green Energy. The SEC’s complaint also alleges that US investors were misled through inaccurate disclosures related to the company’s anti-corruption practices.
The Adani Group has consistently denied the allegations, calling them baseless, and has said it will pursue all available legal remedies. The group did not immediately respond to queries regarding the latest SEC filing. India’s law ministry, which had earlier described the matter as a legal dispute between private parties and US authorities, also declined to comment.
In its submission, the SEC said India rejected the requests on procedural grounds, including requirements related to signatures and official seals. The regulator argued that such conditions are not applicable under international treaties governing cross-border service of process, including the Hague Convention. In its second rejection in December, India’s law ministry also appeared to question the SEC’s authority to seek service of summons, the filing noted.
Market experts said the selloff was amplified by weak broader market sentiment and profit-taking in stocks that had rallied sharply in recent months.
“While there is no immediate impact on operations, any escalation of legal proceedings in the US increases uncertainty. Markets tend to price in worst-case scenarios when regulatory risks resurface,” said a fund manager at a domestic institutional investor.
Analysts cautioned against drawing long-term conclusions from a single trading session, noting that legal processes can be prolonged and outcomes uncertain. However, they acknowledged that recurring regulatory scrutiny continues to weigh on investor confidence and could sustain a valuation discount for the group.
Despite the sharp correction, some analysts pointed out that fundamentals across several group companies remain intact, and stock movements in the near term are likely to be driven largely by news flow related to the US proceedings.
For now, investors are expected to adopt a wait-and-watch approach, closely tracking further developments in the SEC case and any official response from Indian authorities, even as volatility in Adani stocks remains elevated.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
