Adani Group Responds to US SEC Summons Report; No Allegations Against Company
Adani Group companies have firmly stated that they face no allegations. In a stock exchange filing on Saturday, the group clarified in response to recent media speculation suggesting that the United States Securities and Exchange Commission (US SEC) is seeking court permission to deliver legal summons to Chairman Gautam Adani and his nephew Sagar Adani via alternative methods, such as direct email.
Key Points of Clarification
– Adani Group companies, including Adani Power, Adani Enterprises, Adani Ports, and Adani Green Energy, issued clarifications confirming that:
– No allegations have been made against them.
– The company is not a party to any legal proceedings.
– The group reiterated a previous clarification from November 21, 2024, addressing similar concerns raised by an earlier Bloomberg report.
– The recent filings emphasized that the contents of the media reports do not activate any disclosure requirements under SEBI regulations.
– The filing included a reference to an article from CNBC on November 21, 2024, which stated that:
– The US Department of Justice and the US SEC had issued a criminal indictment and brought a civil complaint in the Eastern District of New York against Gautam Adani and two other board members of Adani Green Energy Limited.
Background on Legal Developments
– The media reports referenced a Bloomberg article stating that the US SEC had approached a federal judge in Brooklyn, New York, seeking permission for alternative means to serve summons, as previous requests through official diplomatic channels were denied by Indian authorities.
– The SEC claims the legal action is rooted in an indictment unsealed in November 2024, alleging that Adani Group executives engaged in bribery of Indian officials to secure power purchase agreements.
– The indictment also includes claims that executives misled US investors by providing inaccurate disclosures regarding anti-corruption practices.
– According to the filings, the SEC aims to serve the summons directly via email, citing unsuccessful attempts to do so through India’s government.
Market Reaction
Following these legal developments, shares of Adani Group companies experienced a notable decline:
– Adani Enterprises: down 10.7%
– Adani Ports: fell 7.5%
– Adani Green Energy: decreased over 14%
– Adani Power: ended lower by 5.5%
In summary, the Adani Group’s clarification emphasizes that the company is not implicated in the ongoing proceedings, reinforcing its earlier statements that no allegations have been directed against them. As these events unfold, market performance for Adani Group stocks will be closely monitored.