Adani’s legal battle: US bribery charges could spark complex multi-jurisdictional defence

The US indictment of billionaire Gautam Adani in a $250 million bribery case could set the stage for a lengthy legal process involving a multi-jurisdictional defence.

The legal process in the US would begin with an arraignment, where the charges would be formally read, followed by a discovery phase and pre-trial motions, explained Ravi Prakash, a securities law counsel from Delhi. “If no plea agreement is reached, the case proceeds to trial, where evidence is presented, witnesses cross-examined, and the jury delivers a verdict.”

Prakash added that Adani could invoke international legal principles to argue that the allegations should be investigated under Indian law, possibly with US assistance, under treaties like the UN Convention Against Corruption.

US prosecutors have indicted Adani and seven others on charges of bribing Indian government officials to secure solar energy supply contracts for Adani Green Energy Ltd and Azure Power Global Ltd, which was previously listed on the New York Stock Exchange.

While Adani group has denied the allegations and said it will take suitable legal action, Reuters reported that arrest warrants have been issued for Adani and his nephew Sagar Adani—the chairman and executive director, respectively, of Adani Green Energy.

According to lawyers, Gautam Adani now has two immediate options before him to counter the allegations: seek bail in a US trial court and mount a multi-jurisdictional defence against the allegations.

Also read | Adani bribery case: whistleblowers, WhatsApp texts, and ‘incentives’

Multiple charges

The bribery charges against Gautam Adani by the US Securities and Exchange Commission (SEC) and the US Department of Justice (DOJ) related to actions taken between 2020 and 2024 to secure solar energy supply contracts.

The indictment outlines severe violations of US federal laws, particularly the Foreign Corrupt Practices Act (FCPA) and the Foreign Extortion Prevention Act (Fepa). The FCPA, a key part of US anti-corruption legislation, makes it illegal for US entities and individuals to bribe foreign officials to obtain or retain business.

The indictment includes multiple charges: conspiracy to violate the FCPA, securities fraud conspiracy, wire fraud conspiracy, securities fraud related to a 2021 bond offering, and conspiracy to obstruct justice. The prosecutors are also seeking the forfeiture of assets linked to the alleged crimes, including proceeds from bribery and fraud.

Also read | Adani bribery case: whistleblowers, WhatsApp texts, and ‘incentives’

Adani, however, could argue that these alleged acts do not fall under US jurisdiction, said Tushar Kumar, an advocate at the Supreme Court of India.

Senior securities lawyer Chirag M. Shah said an indictment by a grand jury is the beginning of a long process, adding that members of a grand jury may not understand complex financial transactions.

“It is not a heinous crime where a jury of one’s peers can judge whether the defendant is guilty. The prosecution must share the evidence, and defence attorneys can seek a dismissal on legal grounds,” Shah said.

“The discussion of a possible arrest is far-fetched,” the lawyer added. “The judge has discretion, and the facts don’t justify such an action.”