Shares of Adani Group stocks came under sharp selling pressure on Friday, January 23, after reports emerged that the US Securities and Exchange Commission (SEC) is seeking court approval to move ahead with legal steps involving senior members of the conglomerate’s leadership.
According to a Bloomberg report, the SEC has approached a US district judge requesting permission to proceed with issuing legal summons to Adani Group Chairman Gautam Adani and his nephew Sagar Adani. The application was made earlier this week before US District Judge Nicholas Garaufis in Brooklyn, New York.
The regulator has reportedly asked the court to allow the use of alternative methods to formally notify Gautam and Sagar Adani about the legal action. This request follows what the SEC described as multiple unsuccessful attempts to serve summons through conventional channels.
Bloomberg reported that the SEC told the court it had repeatedly sought assistance from the Indian government to deliver the summons but had not been successful so far. As a result, the US regulator is now seeking judicial approval to adopt other legally permissible routes to ensure that the individuals concerned are formally informed of the proceedings.
The development weighed heavily on investor sentiment, triggering a sharp decline across several Adani Group stocks during Friday’s trading session.
(With inputs from Bloomberg)
