Adani group stocks plunge as U.S. SEC looks to question founder over fraud charges

• Adani Green Energy fell 12%, Adani Enterprises dropped over 8%, and Adani Power declined 5% following the SEC's court filing
• Adani and co-defendants are accused of paying over $250 million in bribes to Indian officials to secure solar energy contracts worth more than $2 billion in profits
• The SEC claims it repeatedly sought assistance from the Indian government to deliver summons but was unsuccessful, prompting the request to the U.S. District Judge

Summary: Adani Group Stocks Plunge Amid U.S. SEC Fraud Investigation

Key Developments:

Adani Group stocks suffered significant losses on Friday as the U.S. Securities and Exchange Commission (SEC) reportedly seeks permission to summons founder Gautam Adani over fraud and bribery charges. Adani Green Energy plummeted 12%, flagship Adani Enterprises dropped over 8%, and Adani Power fell 5%.

Legal Action:

In November 2024, Gautam Adani and seven others were indicted in New York federal court on charges related to a massive bribery and fraud scheme. The SEC has now requested U.S. District Judge Nicholas Garaufis in Brooklyn to issue legal summons to Gautam Adani and Sagar Adani, executive director of Adani Green Energy. The SEC reports repeated unsuccessful attempts to deliver summons through the Indian government.

Allegations:

The defendants allegedly paid Indian government officials over $250 million in bribes to secure solar energy supply contracts valued at more than $2 billion in potential profits. Additionally, the Adani Group executives are accused of misleading U.S. and international investors about the company's anti-bribery and anti-corruption compliance while raising over $3 billion in capital to fund energy contracts.

Market Impact:

The news triggered substantial sell-offs across Adani Group companies, reflecting investor concerns about legal exposure and potential regulatory consequences. The conglomerate, led by one of the world's richest individuals, faces mounting scrutiny from U.S. authorities, with implications for its international fundraising capabilities and corporate governance reputation.