US court allows pre-motion hearing on Gautam Adani’s plea to dismiss SEC fraud case

A United States court has granted a request by billionaire industrialist Gautam Adani to schedule a pre-motion hearing in a case filed by the U.S. Securities and Exchange Commission, marking a significant development in his attempt to dismiss the securities fraud complaint. The order directs both parties to confer and set a date for the hearing, which will determine whether the case proceeds further.

The case stems from allegations made by the SEC in November 2024, accusing Adani and his nephew, Sagar Adani, of involvement in a multi-million-dollar bribery scheme linked to solar energy contracts in India. The complaint also alleged that investors were misled during a bond issuance. However, the Adani Group has consistently denied all allegations, maintaining that there is no credible evidence to support the claims.

In their legal filings, the defendants have argued that the US court lacks jurisdiction over the matter, asserting that the transactions in question were conducted outside the United States. They stated that the $750 million bond offering was executed under regulatory exemptions and involved non-US entities, with only a limited downstream connection to American investors. They further contended that the alleged actions took place entirely in India, making the case extraterritorial in nature.

The defence also emphasised that the SEC has not demonstrated any investor losses, noting that the bonds in question have already matured and were fully repaid with interest. Additionally, the filing argued that the regulator failed to establish direct involvement of either Gautam Adani or Sagar Adani in any alleged misstatements, or to prove intent to defraud, which is a key requirement under US securities law.

With the court allowing the pre-motion hearing, Adani’s legal team will now have the opportunity to argue for dismissal at an early stage. The outcome of this hearing will be crucial in determining whether the case proceeds to a full trial or is dismissed on legal and jurisdictional grounds.