Adani group stocks fall; SEC looks to question founder on fraud charges

Shares of Adani Group companies fell between 5 and 13% on Friday as court filings showed the U.S. Securities and Exchange Commission wants to issue subpoenas to founder Gautam Adani and his nephew Sagar Adani on bribery and fraud charges.

Indian billionaire Gautam Adani, chairman of India’s Adani Group and one of the richest people in the world, was indicted in New York federal court in November 2024 along with seven other men on charges related to a massive bribery and fraud scheme.

SEC’s approached U.S. District Judge Nicholas Garaufis in Brooklyn is seeking permission to issue legal subpoenas to Adani Group Chairman Gautam Adani and Sagar Adani, chief executive of Adani Green Energy, according to court filings. CNBC has reached out to Adani Group and the US SEC for comment.

shares Adani Green Energy While it ended the session down nearly 14%, the flagship company’s Adani Enterprises It closed Friday with a 10.7% decrease. shares Adani Power It fell 5.7%.

Adani Group executives are accused of misleading U.S. and international investors about their company’s compliance with anti-bribery and anti-corruption practices as they raised more than $3 billion in capital to finance these energy contracts.

The SEC told the court that India’s Ministry of Law and Justice had twice refused to issue summons to Gautam Adani and Sagar Adani under the Hague Convention last year. “The Department appears to suggest that the SEC does not have the authority to invoke the Hague Convention or to require service of subpoena,” the statement said.

Adani and several other defendants are accused of paying more than $250 million in bribes to Indian government officials to reap more than $2 billion in profits.