The US Securities and Exchange Commission (SEC) has asked a federal court in New York to approve proposed final judgments to settle civil fraud charges against Gautam Adani and Sagar Adani, according to a filing made on Thursday.
The proposed final judgments would require Gautam Adani to pay a civil penalty of $6 million and Sagar Adani to pay $12 million. The SEC said it has reviewed and approved the settlement terms as reflected in the consents and the proposed final judgments.
“Without admitting or denying the allegations, each defendant has consented to entry of a proposed Final Judgment that would permanently enjoin him from future violations of Securities Act Section 17(a), Exchange Act Section 10(b), and Rule 10b-5 thereunder, and impose a civil penalty pursuant to Securities Act Section 20(d) [15 U.S.C. § 77t(d)] and Exchange Act Section 21(d)(3) [15 U.S.C. § 78u(d)(3)],” SEC said in a letter to United States District Court.
In a submission to the United States District Court for the Eastern District of New York, the SEC said the settlements would fully resolve its claims arising from an alleged misstatement case linked to a bond offering by Adani Green Energy Limited. The regulator has proposed civil penalties of $6 million for Gautam Adani and $12 million for Sagar Adani, without either admitting or denying the allegations.
The SEC had filed its complaint in November 2024, alleging violations of US securities laws, including provisions related to anti-fraud and market manipulation, by approving or making false or misleading statements in offering materials connected to the Adani Green bond issue.
As part of the proposed settlement, both defendants have consented to permanent injunctions barring future violations of the relevant provisions of the Securities Act and the Securities Exchange Act, including Rule 10b-5, the filing said. The SEC told the court that the consent judgments were legal, clear in terms, resolved all claims in the complaint, and were the result of arm’s-length negotiations.
The regulator added that the proposed injunctions would not disserve the public interest and urged the court to approve and enter the final judgments.
Sagar Adani and Gautam Adani have consented to the entry of the Final Judgment without admitting or denying the allegations of the Complaint and waived findings of fact and conclusions of law, and waived any right to appeal from this Final Judgment.
According to the Proposed Final Judgment, Sagar Adani and Gautam Adani will be paying a civil penalty of $12 million and $6 million respectively to the Securities and Exchange Commission pursuant to Securities Act Section 20(d) [15 U.S.C. § 77t(d)] and Exchange Act Section 21(d)(3) [15 U.S.C. § 78u(d)(3)]. The payment will be made within 30 days after entry of this Final Judgment.
