Gautam Adani has agreed to settle a civil lawsuit filed by the US Securities and Exchange Commission (SEC), according to court records cited by Reuters, marking a significant development in the long-running scrutiny over alleged bribery-linked solar contracts.
The proposed settlement, which is still subject to court approval, comes at a time when separate reports in the United States suggest the Department of Justice may also be reassessing its position in the broader case. The matter has drawn attention both in India and overseas because of its potential impact on investor confidence and the Adani Group’s global business interests.
According to Reuters, court documents show Gautam Adani agreed to pay a civil penalty of USD 6 million, while his nephew Sagar Adani agreed to pay USD 12 million. Media reports said the settlement does not include any admission of wrongdoing by either of them.
The SEC had earlier accused Gautam Adani, Sagar Adani and others of being part of an alleged bribery scheme worth more than USD 250 million between 2020 and 2024 to secure solar energy contracts in India.
What Adani’s legal team argued in the US court
In April, the US District Court for the Eastern District of New York accepted a plea from the Adanis’ lawyers seeking a pre-motion conference to dismiss the SEC complaint.
The legal team argued that the US court lacked personal jurisdiction over the defendants and claimed the SEC’s allegations attempted to extend American law beyond its territorial scope.
According to the defence, the alleged statements cited by the SEC were too broad and general to be treated as guarantees that investors could reasonably rely upon. The lawyers also argued that the defendants were not directly involved in the transactions being questioned by regulators.
The court filing further stated that the matter involved Indian entities, Indian executives and conduct that allegedly took place entirely within India.
Adani defence cites overseas bond structure
The defence also referred to a USD 750 million bond offering conducted by Adani Green Energy Ltd (AGEL) in September 2021 under SEC Rule 144A and Regulation S.
According to the filing, the bonds were sold outside the United States through non-US underwriters and only a small fraction was later resold to investors in the US market. The lawyers maintained that AGEL itself was not directly involved in those secondary transactions.
The counsels further argued that the underwriters were not US institutions and the subscription agreements governing the transactions were not based on US law.
The filing also said that even if the allegations were accepted at face value, the complaint did not establish a legal violation strong enough to proceed under US law.
NYT report claims DOJ may reconsider charges
Separately, a report by The New York Times claimed that the US Justice Department is considering dropping criminal charges against Gautam Adani.
The report said Adani recently hired a legal team led by Robert J Giuffra Jr of Sullivan & Cromwell LLP, who has also represented US President Donald Trump.
According to the report, Giuffra met officials at the Justice Department headquarters in Washington last month and argued that prosecutors lacked both evidence and jurisdiction in the case.
The New York Times also reported that Adani’s team suggested the group could potentially invest USD 10 billion in the US economy and create around 15,000 jobs if the charges were dropped.
However, prosecutors reportedly told the legal team that any proposed investment would not influence the case. The newspaper, citing people familiar with the discussions, said one Justice Department official reacted favourably to the proposal.