A US federal court has ordered Adani Group chairman Gautam Adani to pay a $6 million civil penalty to the Securities and Exchange Commission (SEC) in a securities law case.
The final judgment, filed before the US District Court for the Eastern District of New York on August 10, permanently restrains Adani from violating provisions of the Securities Exchange Act of 1934 and the Securities Act of 1933 relating to fraudulent conduct and material misstatements or omissions in connection with securities transactions.
Adani had consented to the entry of the final judgment without admitting the allegations in the SEC’s complaint, except as to jurisdiction. He also waived findings of fact and conclusions of law, as well as any right to appeal the judgment.
Under the order, Adani is required to pay the $6 million civil penalty to the SEC within 30 days of the judgment. The penalty has been imposed under provisions of both the Securities Act and the Exchange Act.
The judgment further states that the SEC can enforce the penalty through collection procedures authorised by law, including proceedings for civil contempt in case of violation of court orders. Any amount remaining unpaid after 30 days will also attract post-judgment interest.
The court’s order also provides that any civil penalty or other amount due under the judgment in connection with the proceeding would constitute a debt arising from a violation of federal securities laws and would not be dischargeable in bankruptcy proceedings.
