SEC case against Adani stalled by US shutdown, delays in New Delhi

ET has reviewed the court documents.

The update follows a series of procedural filings this year on the SEC's attempts to serve summons and complaints on the Adani Group and related defendants in India. The regulator said the defendants are "located in India and the SEC's efforts to serve them are ongoing," including a request to Indian authorities under the Hague Service Convention.

Despite repeated correspondence - most recently on September 14, 2025 - "those authorities have not yet effected service," the SEC said, adding it "will continue communicating with the India MoLJ (law and justice ministry) and pursuing service via the Hague Convention."

The SEC's November 20, 2024, complaint accuses Gautam Adani, Sagar Adani, and others of violating US federal securities laws by "making false and misleading representations about Adani Green Energy Ltd in connection with a September 2021 debt offering."

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The US SEC's case against Gautam Adani faces a double delay as India's law ministry has yet to serve summons, and a US government shutdown has furloughed SEC staff. The agency requested a 60-day extension, effectively pausing the proceedings until federal funding resumes and personnel are available to work on the matter.

The US Securities and Exchange Commission's (SEC) case against Gautam Adani has run into a double delay - with India's law ministry yet to serve the summons to the billionaire industrialist, and the US government shutdown forcing SEC staff off work.

The SEC on Friday informed a US court that it last contacted the Indian ministry on September 14, but the summons had still not been effected.

With most of its personnel furloughed due to lapsed federal funding, the SEC has sought an extension in the proceedings.

The agency noted that the counsel assigned to the Adani case has been furloughed and is "unavailable to work on this matter," as federal law bars furloughed employees from volunteering. Citing 31 U.S.C. 1342, the SEC requested that the next status report be filed 60 days after funding resumes, effectively pausing the case until Washington reopens.

ET has reviewed the court documents.

The update follows a series of procedural filings this year on the SEC's attempts to serve summons and complaints on the Adani Group and related defendants in India. The regulator said the defendants are "located in India and the SEC's efforts to serve them are ongoing," including a request to Indian authorities under the Hague Service Convention.

Despite repeated correspondence - most recently on September 14, 2025 - "those authorities have not yet effected service," the SEC said, adding it "will continue communicating with the India MoLJ (law and justice ministry) and pursuing service via the Hague Convention."

The SEC's November 20, 2024, complaint accuses Gautam Adani, Sagar Adani, and others of violating US federal securities laws by "making false and misleading representations about Adani Green Energy Ltd in connection with a September 2021 debt offering."

Because the defendants are in India, service falls under Rule 4(f) of the Federal Rules of Civil Procedure, allowing the SEC to serve them "by any internationally agreed means reasonably calculated to give notice."

The furloughs of SEC personnel follow the Trump administration's October 1 shutdown, which halted non-essential federal operations. Enforcement and litigation, including the Adani case, are frozen, leaving one of the most closely watched cross-border proceedings stalled until US funding resumes.

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Source: EconomicTimes
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