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Claim- American agency cannot send summons directly to Adani: notice can be sent only through political channel; Petition for inquiry in the Supreme Court

The US Securities and Commission (SEC) does not have the power to summon Adani Group chairman Gautam Adani on charges of billions of rupees in bribery and fraud. This has been claimed in some media reports. It says the summons has to be sent through proper diplomatic channels.

This case related to 8 people including Gautam Adani has now reached the Supreme Court. Advocate Vishal Tiwari has filed a petition in the Supreme Court and demanded an inquiry into the matter. The petition also alleged flaws in the investigation conducted by market regulator Sebi into allegations made by short seller Hindenburg Research against the Adani Group and raised concerns over the credibility of the Securities Exchange Board of India.

Petitioner Vishal Tiwari said the US Justice Department's order and the United States Securities and Exchange Commission's complaint have exposed the wrongdoings of the Adani Group. He said that the allegations are so serious that in the interest of the country the matter should be investigated by Indian agencies as well.

Advocate Vishal Tiwari has filed a petition in the Supreme Court seeking an inquiry into the allegations leveled by Hindenburg.

Adani Green Energy is setting up a 30,000 MW solar plant at a single location in Khawara, Gujarat.

The SEC does not have the authority to issue direct summons to Adani According to media reports, the US Securities and Commission (SEC) will have to summon Gautam Adani and his nephew Sagar through proper diplomatic channels, as it is not within its jurisdiction to summon a foreign national directly. The US SEC has no jurisdiction over foreign nationals and cannot send them anything through the mail. The 1965 Hague Convention, a mutual legal assistance treaty between India and the US, regulates such cases.

Earlier on Saturday, news broke that the US SEC had summoned Gautam Adani and his nephew Sagar Adani to clarify their stand on bribery and fraud charges against them. According to the news agency, Adani's Shantivan Farm House in Ahmedabad and his nephew Sagar's Bodakdev Residence have been summoned to respond to the SEC within 21 days.

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The notice sent by the New York Eastern District Court states that 'within 21 days after service of this summons (not including the date you receive the summons), you must respond to the plaintiff (SEC)'s attached complaint or file a federal A motion of civil procedure. Service must be served under Rule 12 of the Rules. If it fails to respond, judgment will be entered against Adani for the relief sought in the complaint. The answer has to be filed in court.

The case was filed in federal court in New York on October 24, 2024 In fact, on November 21, the United States Attorney's Office said that Adani paid or planned to pay bribes of $265 million (about Rs 2,200 crore) to Indian officials to secure contracts related to solar power in India.

The entire matter is related to Adani Group company Adani Green Energy Limited and another firm. The case was filed on 24 October 2024 in a federal court in New York. Gautam Adani, his nephew Sagar Adani, Vineet S Jain, Ranjit Gupta, Cyril Cabenis, Saurabh Agarwal, Deepak Malhotra and Rupesh Agarwal have been made accused in the hearing held on Wednesday i.e. November 20.

According to a Reuters report, arrest warrants have also been issued against Gautam Adani and Sagar. Sagar is an officer of Adani Green Energy Limited.

Understand, what is The whole case of manipulation and bribery… According to a US Justice Department filing, Solar Energy Corporation of India or SECI had signed a contract to supply 12 gigawatts of energy to the country. SECI is a renewable energy company of the Government of India, which aims to increase the use of solar energy in the country.

Between December 2019 and July 2020, Adani Green Energy Limited (AGEL) and a foreign company won the contract. A Letter of Award (LOA) was issued to him.

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A problem arose here. SECI was not getting customers for electricity purchased from AGEL and foreign companies. In such a situation it is not able to purchase electricity from AGEN and foreign companies. This would have hurt Adani's company and the foreign firm.

According to the chargesheet, Gautam Adani and his nephew Sagar Adani, Vineet Jain and 7 others conspired to bribe officials. So that state governments can enter into power sale agreements with SECI and find buyers for their solar power contracts.

According to the charge sheet, 'Gautam Adani met senior Andhra Pradesh officials several times between 7 August 2021 and 20 November 2021. So that solar power agreement is signed between Andhra Pradesh Vidyut Distribution Company (APEPDCL) and SECI.

After this an agreement was signed between APEPDCL and SECI. AGEL and a foreign firm were awarded the contract. After this, the State Electricity Distribution Boards of Chhattisgarh, Tamil Nadu, Odisha, Jammu and Kashmir signed agreements for purchase of electricity.

Two official documents were released in this whole matter

1. Indictment filed by American prosecutors in the Clerk's Office of the Eastern District Court of New York. There is no mention of an arrest warrant.

2. Press release issued by the US Attorney's Office for the Eastern District of New York. It also does not mention the arrest warrant against Gautam Adani.

At the same time, American news agency Reuters wrote in a report on November 21, 'According to court records, a judge has issued arrest warrants for Gautam Adani and Sagar Adani. Prosecutors are preparing to hand over the warrant to foreign law enforcement.

The Adani Group dismissed all the allegations as baseless Adani Group has dismissed all the allegations as baseless. Issuing a statement on November 21, the group said – 'The allegations made by the United States Department of Justice and the United States Securities and Exchange Commission against the directors of Adani Green Energy Limited are baseless. We refute them.

Sagar Adani manages the energy business Gautam Adani's nephew, Sagar holds a degree in Economics from Brown University US. Sagar joined the Adani Group in 2015. Sagar manages the group's energy business and finance. He focuses on the renewable energy business and plans to make the company the world's largest renewable energy producer by 2030.

Adani Green Energy has a clean energy portfolio of over 20 GW Adani Green Energy Limited has a clean energy portfolio of more than 20 GW, including the world's largest solar power plant in the country's southern state of Tamil Nadu. Adani Group aims to become the country's largest company in this sector by 2030. The market cap of the company is Rs 1.85 lakh crore.

Vishal Tiwari filed the petition first Earlier, Vishal Tiwari had petitioned the Supreme Court for an inquiry into the allegations leveled by Hindenburg. This case was of January 2023. Gautam Adani's flagship company Adani Enterprises has invested Rs. 20,000 crore announced a follow-on public offer. The offer was scheduled to open on January 27, 2023, but before that, Hindenburg Research released a report on January 24, 2023, accusing the Adani Group of money laundering and share manipulation.

As of January 25, the market value of the group's shares fell by nearly $12 billion (roughly Rs 1 lakh crore). However, Adani denied any wrongdoing allegations. In such a situation, the Adani Group has its Rs. 20,000 crore follow-on public offer was also cancelled. The Supreme Court constituted a 6-member committee to investigate the case and SEBI also investigated the case.

After the court's decision, Adani Group Chairman Gautam Adani said, 'The court's decision shows that truth has won. Satyamev Jayate. I am grateful to those who stood with us. Our contribution to India's development story will continue. Jai Hind.'

Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).

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