What is the story about?
Why Are Adani Stocks Falling Today? Adani Group stocks, spearheaded by Adani Green, Adani Enterprises, Adani Energy and Adani Ports, declined over 15 per
cent after a Reuters report said the US Securities and Exchange Commission had requested a US court for permission to directly email summons to Gautam Adani and Sagar Adani. The combined market capitalisation of all 10 listed entities of the conglomerate fell Rs 1.40 lakh crore to Rs 12.20 lakh crore during the day.
Adani Group Stocks Fall
The flagship company, Adani Enterprises, fell as much as 10 per cent to Rs 1850. Shares of Adani Green fell as much as 15 per cent. Adani Ports shares fell around 8 per cent.Why Adani Stocks Are Falling Today?
According to the Reuters report, citing court filings, the US SEC has sought court approval to personally serve summons to billionaire Gautam Adani and Adani Group executive Sagar Adani via email. The commission wants to summon them in an alleged fraud case involving a USD 265 million bribery scheme, news agency Reuters reported citing court filings.
The SEC said that India had earlier rejected its two requests to deliver the summons to Gautam Adani.
Adani group has called the allegations "baseless" and said that it would seek "all possible legal recourse" to defend itself.
Highlights;
- Adani stocks slide after US SEC legal move
- SEC seeks court nod to email summons
- Gautam, Sagar Adani named in the case
- Group market cap drops Rs 1.4 lakh crore
- Adani Group denies charges, vows legal fight
In its response to a New York court, the commission said that it does not expect the summons to be delivered to the both businessmen through the existing legal process. The commission added that it should be allowed to directly send email the summons to the top Adani Group executives.
Notably, the federal regulator of US securities markets has been trying since last year to serve summons to Gautam Adani and Sagar Adani in what is considered to be the most high-profile legal case in the US involving an Indian conglomerate.
Back home, the Ministry of Law and Justice had previously described the matter as a legal issue between private firms and the United States.
Gautam Adani Case In US: Explained
In November 2024, Gautam Adani and Sagar Adani were charged in the United States over alleged bribery and fraud. It was alleged that Adani Group executives were part of a scheme to pay bribes to Indian officials for buying electricity produced by Adani Green Energy, an entity of Adani Group. Adani Green Energy was founded in 2015 and is headquartered in Ahmedabad.
According to the SEC complaint, the executives also misled US investors by providing information about the company's anti-graft practices.
The Ahmedabad-headquartered multinational conglomerate had, however, strongly denied the charges and described the allegations of a USD 250 million bribery scheme as "baseless". The group had then said it remains committed to defending itself and will pursue all available legal options. It had said: "The Adani Group has always upheld and is steadfastly committed to maintaining the highest standards of governance, transparency and regulatory compliance across all jurisdictions of its operations. We assure our stakeholders, partners and employees that we are a law-abiding organisation, fully compliant with all laws."
