Winning Bizness Desk
Mumbai.Gautam Adani, chairman of the Adani Group, has seen his net worth decline by ₹1.03 lakh crore since January 1 this year. According to global rankings, Adani has witnessed the second-largest drop in net worth after Elon Musk.
The US Securities and Exchange Commission (SEC) has summoned Gautam Adani over alleged fraud and bribery in the United States. As per reports, the Indian government transferred the summons to Ahmedabad’s session court on February 25, ensuring its delivery to Adani’s Shantivan farmhouse in Ahmedabad. The notice was issued under the 1965 Hague Convention, allowing countries to request legal document delivery across borders.
Allegations of Bribery in the US
The US SEC had previously summoned Adani on November 23, 2024, asking him to clarify his stance on these allegations. Both Gautam and Sagar Adani were given 21 days to respond. The charges claim that Adani Group fraudulently secured renewable energy projects in India by bribing officials with $250 million (₹2,029 crore). The case, filed in a New York federal court on October 24, 2024, alleges that Adani Group misled American investors and banks while raising funds.
India’s Role in the 1965 Hague Convention
The Hague Convention, signed in 1965 by 84 countries, facilitates the legal delivery of documents across borders in commercial cases. India joined the convention in 2006 with certain conditions. The summons to Adani has been issued under this treaty, ensuring legal compliance in cross-border cases.
Adani’s Past Controversies
Over the past few years, Gautam Adani has been involved in multiple controversies, including fraud, money laundering, and financial manipulation allegations. Notably, in January 2023, Hindenburg Research accused the Adani Group of stock manipulation and money laundering, leading to a stock market crash that wiped out ₹1 lakh crore of Adani Group’s market value. Despite denials, the Indian Supreme Court and SEBI launched separate investigations.
Financial Times' Coal Scam Allegations
A Financial Times report in 2024 alleged that Adani Group imported low-grade coal from Indonesia at $28 per ton and sold it to India’s Tamil Nadu power company (TANGEDCO) as high-quality coal for $91.91 per ton. Previous reports also accused the group of over-invoicing coal imports between 2019-2021, allegedly inflating prices by ₹582 crore.
The Adani Group has repeatedly denied all allegations, calling them politically motivated and misleading. However, global and domestic agencies continue to probe these claims.
