A US federal court has rejected a motion by a third party seeking to intervene in the Securities and Exchange Commission’s (SEC) civil enforcement action against billionaire Gautam Adani and his nephew Sagar Adani, ruling that the applicant failed to establish any legally protectable interest in the proceedings.
In a memorandum and order dated July 15, Judge Nicholas G. Garaufis of the US District Court for the Eastern District of New York denied a motion filed by pro se litigant Ashu Shukla, who had sought to join the SEC’s lawsuit against the Adani executives. The court also directed the Clerk of Court to reject any further filings by Shukla in the matter.
Shukla argued that a potential settlement between the SEC and the Adanis would affect “global investors, business and peace initiatives” and alleged that the enforcement action formed part of a coordinated effort involving unidentified US and Indian officials. The court held that these claims did not demonstrate a personal legal interest in the litigation, but instead relied on broad assertions of public interest.
Judge Garaufis found the allegations to be “conclusory and speculative,” noting that Shukla’s submissions, which included social media posts and unrelated materials, had failed to provide credible evidence supporting claims of collusion or a coordinated agenda behind the SEC’s case. The order observed that the motion did not identify the alleged actors with specificity or explain how the purported conduct gave Shukla a legally cognisable stake in the proceedings.
The court held that Shukla had failed to satisfy the requirements for intervention as of right under Rule 24 of the Federal Rules of Civil Procedure, including demonstrating a direct legal interest that could be impaired by the outcome of the case. It also declined to permit intervention on a discretionary basis, stating that his participation would not contribute to the development of the factual or legal issues before the court.
The SEC filed its civil enforcement action against Gautam Adani and Sagar Adani in November 2024, alleging securities law violations linked to an overseas bond offering.
The case remains pending before the Eastern District of New York.
