The US Securities and Exchange Commission’s (SEC) civil securities lawsuit against Adani Group Chairman Gautam Adani has been temporarily paused due to the ongoing US federal government shutdown, Bloomberg reported. The furlough of SEC attorneys has stalled progress in the case, which accuses Adani and top executives of securities fraud and large-scale bribery.
₹2,000 crore bribery scheme alleged
In November, federal prosecutors in Brooklyn indicted Gautam Adani, alleging that in 2021 he orchestrated a ₹2,000 crore (approximately $250 million) bribery scheme to secure solar energy contracts from Indian government officials.
The five-count criminal indictment also names Sagar R. Adani, his nephew, and Vneet S. Jaain, an executive at Adani Green Energy Ltd., accusing them of violating US federal laws, including anti-bribery and securities provisions.
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Misleading statements to investors
In a parallel civil lawsuit, the SEC alleges that Gautam and Sagar Adani made false and misleading statements about Adani Green Energy under US securities laws. According to a filing dated October 10, the SEC informed the court that the agency’s attorney handling the case was “unavailable to work on this matter” during the shutdown.
US Magistrate Judge James Cho subsequently granted the SEC’s request to pause proceedings and directed the government to file a status report within 30 days after the shutdown ends.
Criminal case remains active
While the civil enforcement action is paused, the criminal proceedings remain unaffected. None of the defendants or their legal representatives have yet appeared in court.
Prosecutors have also charged five additional individuals with conspiracy to violate the US Foreign Corrupt Practices Act (FCPA) in connection with the alleged bribery scheme involving Indian officials and Adani Green Energy contracts.
Adani Group calls allegations “baseless”
The Adani Group has strongly denied the US allegations, calling them “baseless and politically motivated.”
In June, Gautam Adani said:
“Despite all the noise, the facts are clear — no member of the Adani Group has been charged with violating the FCPA or conspiring to obstruct justice.”
Legal and procedural challenges
According to the SEC and US prosecutors, Adani and his associates raised approximately ₹1,400 crore (around $175 million) from US investors during the alleged bribery scheme, while concealing material misconduct.
However, the SEC’s ability to serve legal summons on Indian-based defendants depends on cooperation with India’s Ministry of Law and Justice under the Hague Service Convention. As per the latest filings, the SEC has not yet successfully served the summons to the defendants in India.
Implications and outlook
The pause in SEC enforcement underscores how administrative disruptions like a federal funding lapse can derail high-stakes, cross-border financial litigation. The delay also shifts the immediate focus toward procedural and diplomatic coordination between US and Indian authorities.
Nonetheless, the criminal case continues, maintaining pressure on Adani and his associates. With both civil and criminal proceedings unfolding in parallel, the controversy is expected to cast a long shadow over Adani Group’s global fundraising prospects and corporate governance reputation in the months ahead.
