Adani Group shares fall; The SEC is investigating the founder on fraud charges

Shares of Adani Group companies fell between 5 and 13% on Friday as the US Securities and Exchange Commission filed suit to subpoena founder Gautam Adani and his nephew Sagar Adani on bribery and fraud charges.

Indian billionaire Gautam AdaniChairman of India Adani Group and became one of the richest people in the world accused In November 2024, he was indicted in New York federal court along with seven others in connection with a massive bribery and fraud scheme.

There is an SEC approached U.S. District Judge Nicholas Garaufis in Brooklyn requested permission to issue subpoenas to Adani Group Chairman Gautam Adani and Adani Green Energy CEO Sagar Adani, according to court filings. CNBC has reached out to Adani Group and the US SEC for comment.

shares Adani Green Energy ended the session 14% lower, while the flagship company Adani Enterprises closed 10.7% lower on Friday. shares Adani Power decreased by 5.7%.

The executives of Adani Group are charged misleading US and international investors on their companies’ compliance with anti-bribery and anti-corruption practices as they raise more than $3 billion in capital to finance energy contracts.

India’s Ministry of Law and Justice twice refused to serve subpoenas to Gautam Adani and Sagar Adani under the Hague Convention last year, the SEC told the court. “The Department appears to have assumed that the SEC does not have jurisdiction to invoke the Hague Convention or to request subpoenas,” the report said.

Adani and several other defendants are accused of paying more than $250 million in bribes to Indian government officials to win contracts to supply solar energy.