New Delhi, May 14 (IANS) The US authorities are moving to resolve the allegations of fraud against Adani Group Chairman Gautam Adani and bring to an end the case, which has been lingering for more than a year, according to sources. 

The US Justice Department may announce the dropping of charges as early as this week. Besides, the Securities and Exchange Commission (SEC) is also moving to settle a parallel civil fraud case it brought against the billionaire industrialist and others in November 2024, according to people in the know of the matter.

While the Justice Department could effectively move to drop the charges with the defendants out of the country, a resolution to the SEC would likely involve a monetary penalty, sources said.

The case brought by the SEC, alongside a criminal complaint by the Department of Justice, alleges that the Adanis sought to pay over $250 million in bribes to Indian officials to secure solar energy contracts and concealed the scheme from US investors and banks when they raised funds.

The counsel for Gautam Adani and his nephew Sagar Adani stated in court that there was no credible evidence supporting the alleged bribery scheme. They pointed out that the SEC lacked necessary jurisdiction over the two men and that the alleged misstatements underpinning the case weren't actionable.

The Adani Group has denied all allegations, stating that none of its entities or executives has been charged under the US Foreign Corrupt Practices Act, and that Adani Green Energy - the renewable energy arm that raised the funds - is not a party to the proceedings.

Last month, a US judge granted a request from Gautam Adani to schedule a hearing to dismiss the US SEC case of alleged fraud. The plea states that the case represents an impermissible extraterritorial application of US law and that the SEC has failed to establish actionable claims under US securities laws.

In filings, Adani's legal team has argued that the case lacks a sufficient jurisdictional basis and fails to establish actionable claims under US securities laws.

The plea also argues that the SEC’s claims over a 2021 bond sale by the Group’s renewable energy arm, Adani Green Energy, are legally flawed on multiple grounds.

The $750-million bond sale was conducted outside the United States under Rule 144A and Regulation S exemptions, with securities sold to non-US underwriters and only later resold in part to qualified institutional buyers, they said.

The Adanis argued that the SEC lacked personal jurisdiction, saying neither of them had sufficient contacts with the US or direct involvement in the bond offering.

The plea filed by the lawyers added that the complaint does not allege that Gautam Adani approved the issuance, attended key meetings, or directed any activity at US investors.

The plea also highlights that the SEC does not allege that there were any investor losses, and there were none. "The bonds have matured, and Adani Green repaid all principal and interest in full to investors in 2024," it added.

The filing also contends the SEC's case is impermissibly extraterritorial, noting the securities were not listed in the United States, the issuer is Indian, and the alleged misconduct occurred entirely in India.

--IANS