New Delhi: A US federal court has agreed to hear a request from billionaire industrialist Gautam Adani seeking dismissal of a fraud case filed by the US Securities and Exchange Commission (SEC). The Eastern District Court of New York granted the defendants’ request for a pre-motion conference, a procedural step that allows them to argue for throwing out the case at an early stage.

The order directs both parties to schedule the hearing, opening the door for the Adani side to challenge the legal validity of the complaint before the case proceeds further.

Allegations and Background of the Case

The SEC case, filed in November 2024 alongside a criminal complaint by the US Department of Justice, alleges that Adani executives orchestrated a $250 million bribery scheme involving Indian officials. According to regulators, the alleged misconduct was linked to securing solar energy contracts and concealing key facts from US investors during fundraising.

The case also names Sagar Adani, executive director of Adani Green Energy.

Defense Challenges Jurisdiction and Evidence

Lawyers representing Gautam Adani and Sagar Adani have strongly denied all allegations, arguing that the SEC lacks jurisdiction and has failed to establish any actionable claims under US securities laws.

Their plea emphasizes:

• No credible evidence supports the alleged bribery scheme


• Neither defendant had sufficient ties to the United States


• Gautam Adani was not directly involved in the bond issuance process


• No investor losses occurred

They also highlighted that the bonds in question matured in 2024 and were fully repaid with interest.

Dispute Over Extraterritorial Reach

A central argument in the defense is that the SEC is overstepping its authority by applying US laws to activities that allegedly took place entirely in India. The legal team contends that:

The issuer is an Indian company

The securities were not listed or traded on US exchanges

The bond sale was conducted the US under Rule 144A and Regulation S exemptions.

They further argue that the SEC has not demonstrated a “domestic transaction,” a key requirement under US law for such cases.

Implications of the Court’s Decision

The court’s decision to grant a hearing does not rule on the merits of the case but gives the Adani camp an opportunity to seek early dismissal. If successful, it could prevent a lengthy legal battle involving discovery and trial proceedings.

For now, the case remains at a preliminary stage, with the upcoming hearing expected to determine whether the SEC’s claims can proceed under US jurisdiction.