The Union Law Ministry has forwarded a summon from the US Securities and Exchange Commission (SEC) to an Ahmedabad court for service to industrialist Gautam Adani. This action, reported by The Hindu, was conducted under the Hague Convention on Service of Judicial and Extrajudicial Documents in Civil and Commercial Matters, 1965. The summons, concerning allegations of securities fraud and a $265 million bribery scheme, was forwarded to the Ahmedabad sessions court in February to be served at Adani’s local address.
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SEC lawsuit and allegations
The SEC, collaborating with federal prosecutors in the Eastern District of New York, has initiated legal proceedings against Gautam Adani and his nephew Sagar Adani. Both, in their roles as executives of Adani Green Ltd, are accused of concealing substantial bribes to Indian government officials to secure above-market energy contracts. The contracts allegedly benefited Adani Green and Azure Power, a solar energy operator. The lawsuit is currently pending at the US District Court for the Eastern District of New York.
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Legal Process under Hague Convention
India, as a signatory to the Hague Convention, is obligated to assist in serving legal documents on residents if requested by another signatory nation like the US. The Department of Legal Affairs (DLA), operating under the Union Law Ministry, initially declined to confirm receipt of the SEC’s request in response to an RTI filed by The Hindu on February 19. However, the DLA later acknowledged that by February 21, it had not received the request, though the summons had been forwarded to the Gujarat court by February 25.
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Adani Group’s response
Despite the ongoing legal proceedings, the Adani Group appears optimistic about future business prospects in the US. Reports suggest that the company is banking on the new US administration under President Donald Trump, which has reportedly paused enforcement of the Foreign Corrupt Practices Act (FCPA), 1977. The Financial Times noted that Adani Group has resumed exploring business opportunities in the US,
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