Adani vs SEC: Diplomatic stalemate makes way for a long courtroom battle

Attorneys representing the Adanis and the US Securities and Exchange Commission (SEC) have reached an agreement allowing the regulator to serve summons and a copy of the complaint on the Adanis through their US-based legal counsel, according to court filings made on Friday.

The two sides have also agreed to an extended legal schedule, giving them more than six months to file motions and oppositions in a staggered manner.

Emails seeking comment from the Adani Group, the US-based attorneys for Gautam and Sagar Adani, and the SEC remained unanswered at the time of publication.

Why the case stalled

The SEC initiated proceedings against the two Adani Group promoters in November 2024, but the case remained stuck for over a year after the US regulator said the Indian government twice rejected its requests to serve summons, citing procedural deficiencies.

Under US law, summons and complaints must be delivered to defendants to formally notify them of the case. International service is governed by the Hague Convention, under which India’s Department of Legal Affairs—part of the Ministry of Law and Justice—acts as the nodal agency for routing legal documents from foreign regulators to Indian citizens.

Courtroom shift

With the Adanis agreeing to the service of process via their attorneys, the case now moves from a diplomatic arena to the courtroom, legal experts said.

“By stipulating to accept service of process via their US counsel, the defendants have effectively bypassed the procedural gridlock of the Hague Convention, which had previously stalled the case," said Ankita Singh, founder of law firm Sarvaank Associates.

The agreement for allowing the service of process does not mean that the Adanis have agreed to being tried in the US. They have reserved their right to use defense over personal jurisdiction, being citizens of India, as per the court filing.

Now, the attorneys for the Adanis will have 90 days to file their response or to serve their motions to dismiss the complaint, as per an agreement between the parties. If the Adanis file a motion to dismiss the case, the SEC will have 60 days to amend their complaint or to serve an opposition to this motion. Subsequently, the Adanis will have 45 more days to file any response to the SEC’s filings.

Long road ahead

Russell A. Stamets, partner at Delhi-based law firm Circle Of Counsels, said such scheduling agreements are common in complex cross-border cases, helping make proceedings more predictable.

“The time-line for responding to these charges seems overly long given that the charges have been filed since November 2024. This undoubtedly reflects the sensitive political nature of the parties involved," he said.