Gautam Adani, nephew Sagar Adani to pay $18 million in SEC fraud case

Gautam Adani and his nephew Sagar Adani have agreed to pay a total of $18 million to settle allegations by the US Securities and Exchange Commission that they made false and misleading statements about Adani Green Energy. Under the proposed settlement filed in federal court on Thursday, Gautam Adani would pay $6 million and Sagar Adani $12 million. The settlement requires approval from a judge.

“Mr Gautam Adani and Mr Sagar Adani have filed their request for entry of final judgment along with the proposed final judgment, on consent, before the US Eastern District NY Court on May 15, 2026 India Time/ May 14, 2026 New York Time, 2026. Mr Gautam Adani and Mr Sagar Adani have consented to inter alia entry of the final judgment without admitting or denying the allegations made in the civil complaint and payment of a civil penalty of USD 6 million and USD 12 million respectively,” said Adani Green Energy in an exchange filing. 

According to a report in Bloomberg, the US Justice Department is also moving to drop fraud charges against Gautam Adani in a related criminal case. These developments may help the group return to international capital markets and continue its expansion plans.

The SEC had sued in November 2024, alleging that Gautam Adani led efforts to pay or promise bribes to Indian officials to secure contracts for Adani Green’s solar power project. The regulator also said Gautam and Sagar Adani falsely promoted the company’s compliance with anti-bribery laws in connection with a $750 million bond offering. At that time, the SEC stated that Adani Green had raised at least $175 million from US investors.

The SEC did not sue the conglomerate or its corporate units. The company had denied the US allegations. 

The Justice Department prosecution had stalled because the Adanis were not in the US, but the SEC case moved forward in court. In January, Robert Giuffra Jr, co-chair of Sullivan & Cromwell, told a federal judge he had reached an agreement to accept the lawsuit on Gautam Adani’s behalf. Court filings showed US-based lawyers agreed to accept formal notification for Sagar Adani. 

Gautam Adani’s lawyers later argued the SEC’s fraud case should be dismissed, citing lack of jurisdiction and that the alleged misstatements were not actionable. The proposed settlement now awaits judicial approval.