New York, April 8 (NationPress) A judge in the United States has approved Billionaire industrialist Gautam Adani's request to schedule a hearing concerning the dismissal of a case filed by the US Securities and Exchange Commission (SEC) alleging fraud. The motion asserts that the case exemplifies an unlawful extraterritorial application of US laws and that the SEC has not substantiated actionable claims under US securities regulations.

"The court has acknowledged the Defendants' correspondence requesting a pre-motion conference regarding their forthcoming motion to dismiss the Complaint. The court has approved this request and instructs the parties to arrange the pre-motion conference," said the Eastern District Court of New York in its directive.

Billionaire Gautam Adani serves as the chairman of the Adani Group, while Sagar Adani holds the position of executive director at Adani Green Energy.

This court ruling enables the Adani relatives to contest the regulator's allegations early on, potentially sidestepping a lengthy discovery phase and trial.

The SEC's case, initiated in November 2024, alongside a criminal complaint from the US Department of Justice, claims that the Adanis attempted to bribe Indian officials with over $250 million to secure solar energy contracts while concealing this from US investors and banks during fundraising efforts.

The legal representatives for Gautam Adani and his nephew Sagar Adani asserted in court that there is no credible evidence backing the alleged bribery scheme. They emphasized that the SEC lacks the necessary jurisdiction over the two and that the alleged inaccuracies central to the case are not actionable.

The Adani Group has refuted all accusations, affirming that none of its entities or executives have faced charges under the US Foreign Corrupt Practices Act and that Adani Green Energy, the renewable energy division that secured the funds, is not involved in the legal proceedings.

In legal filings, Adani's attorneys contended that the case lacks a sufficient jurisdictional foundation and fails to present actionable claims under US securities laws.

The motion also contends that the SEC's claims regarding a 2021 bond sale by Adani Green Energy are legally unsound for several reasons.

The $750 million bond sale occurred outside the United States under Rule 144A and Regulation S exemptions, with securities being sold to non-US underwriters and subsequently resold partially to qualified institutional buyers, they stated.

The Adanis argued that the SEC does not possess personal jurisdiction, as neither has sufficient connections to the US or direct involvement in the bond offering.

The legal motion further notes that the complaint does not claim that Gautam Adani sanctioned the issuance, attended pivotal meetings, or directed any activities with US investors.

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

The filing asserts that the SEC's case is impermissibly extraterritorial, highlighting that the securities were not listed in the United States, the issuer is Indian, and the alleged misconduct occurred entirely within India.

Referencing US Supreme Court precedents, the Adanis claimed that the SEC has not demonstrated any "domestic transaction," which is essential for the application of US securities laws.

The plea further states that the SEC's charges against the Adanis do not address where irrevocable liability was incurred, and the mere fact that some downstream investors were located in the US is irrelevant to the case.

"The SEC's allegations here solely involve Indian defendants, an Indian issuer, securities that are not registered with the SEC and are not traded on any US exchange, with the underlying actions alleged to have occurred exclusively in India," it stated. "Thus, this case is definitively outside the scope of US securities laws."

The defendants also reiterated that the SEC does not allege any investor losses, adding that the bonds matured and were fully repaid with interest in 2024.

They also contested the bribery allegations, claiming there is no credible evidence supporting such accusations.

"The claimed bribery scheme pertains to a solar energy project in India intended for renewable power in India. No US company is alleged to have bid on the project, nor is there any indication that a US customer procured energy from it. In fact, there was no US involvement whatsoever," the plea asserted.