In a key legal development, a US court has granted a procedural request by Gautam Adani and his nephew Sagar Adani in their ongoing legal battle with the U.S. Securities and Exchange Commission. Judge Nicholas G. Garaufis of the Eastern District of New York has approved their plea to hold a pre-motion conference, a step that precedes the formal filing of a motion to dismiss the case.
The SEC had filed the lawsuit in November 2024, alleging securities fraud linked to disclosures around a bond issuance by Adani Green Energy Ltd.
The Adanis’ legal team has argued that the case represents an impermissible extraterritorial application of US securities laws. According to their filing, the court lacks personal jurisdiction as neither Gautam nor Sagar Adani had sufficient direct connections with the United States in relation to the bond transaction.
The defence highlighted that the $750 million bond offering was executed outside the US under Rule 144A and Regulation S frameworks. The securities were initially sold to non-US underwriters and only later resold to qualified institutional buyers, limiting the applicability of US laws.
Further, the defendants cited US Supreme Court precedent requiring a “domestic transaction” for securities laws to apply, asserting that the SEC has failed to establish this criterion.
The SEC’s complaint centres on allegations that the Adanis misled investors by not disclosing an alleged bribery scheme involving Indian officials. However, the defence has strongly denied these claims, stating there is no credible evidence supporting the accusations.
They also emphasised that the bonds in question were fully repaid with interest in 2024, and importantly, no investor losses have been alleged. The filing further argued that statements related to environmental, social, and governance (ESG) commitments were general corporate assertions, often termed as “puffery,” and not legally actionable misrepresentations.
Additionally, the defence contended that the SEC failed to demonstrate intent to defraud or directly link the individuals to misleading disclosures.
The court has directed both parties to coordinate and schedule the pre-motion conference, with a formal motion to dismiss expected to follow later this month. This stage will be critical in determining whether the case proceeds further or is dismissed at an early stage.
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The US court’s decision to allow a pre-motion conference marks an important procedural step in the Adani-SEC case. While not a ruling on merits, it opens the door for the defendants to challenge the legal foundation of the lawsuit. The outcome of the upcoming motion could have broader implications for cross-border securities enforcement and jurisdictional boundaries.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: Apr 8, 2026, 2:52 PM IST
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