Adani Stocks Plummet $12.5 Billion as SEC Seeks Unconventional Email Summons in US Bribery Case
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Adani Group stocks took a massive hit on Friday, with the conglomerate's market capitalization shedding $12.5 billion. The sudden sell-off was triggered by a US Securities and Exchange Commission (SEC) request to serve legal summons via email to Adani Group founder Gautam Adani and group executive Sagar Adani in a US fraud and bribery case. The SEC filed a request in a Brooklyn, New York, federal court after India's government declined to facilitate formal service. The regulator argued that the defendants were already aware of the litigation and would be effectively notified via email to their US-based legal counsel. Stocks across Adani Group companies plummeted, with Adani Enterprises leading the declines at 10.65%. Other group companies, including Adani Green Energy, Adani Energy Solutions, Adani Ports and Special Economic Zone, and Adani Power, also suffered losses ranging from 3.4% to 14.54%. The case against Adani Group executives dates back to November 2024, when US authorities accused them of participating in a bribery scheme to secure electricity purchase agreements for Adani Green Energy. The SEC has filed a civil lawsuit against Gautam Adani and Sagar Adani, separate from a pending criminal indictment. Under US law, foreign companies raising funds from American investors are barred from paying bribes overseas or making false disclosures. The SEC's request for email summons was prompted by unsuccessful attempts to obtain Indian government assistance in serving the defendants. Market analyst Ambareesh Baliga noted that weak market sentiment and the surprise nature of the SEC filing contributed to the sell-off. Adani Enterprises clarified that it is not a party to the legal proceedings and that no allegations have been made against the company. Other group firms echoed similar statements, describing the allegations as 'baseless' and vowing to defend themselves through legal remedies.
