US market regulator seeks joint hearing of cases against Adani, ex-Azure Director

The United States Securities and Exchange Commission (SEC) has approached a New York court with a formal request to consolidate the civil cases against Indian industrialist Gautam Adani and Azure Power’s Cyril Cabanes. The application, filed by the SEC on December 5, seeks to treat the two cases as related, citing overlapping evidence and shared transactional links between the allegations in both matters.
Cyril Cabanes, a former executive at Azure Power, has already been charged with violating the US Foreign Corrupt Practices Act (FCPA), a key aspect of the SEC’s focus on this matter.
While Gautam Adani and his nephew Sagar Adani have not been directly charged with FCPA violations – a fact repeatedly emphasised by their legal counsel, including prominent lawyers Mukul Rohtagi and Mahesh Jethmalani – the SEC’s move to connect these cases raises significant implications for the Indian tycoon.
India Today TV has accessed the SEC’s letter to the court, where the regulatory body argues that the cases against Adani and Cabanes stem from the same series of events and transactions.
The SEC further contends that hearing these cases together would provide a clearer and more comprehensive understanding of the underlying issues.
The SEC’s letter also requests that findings from the criminal case against Gautam Adani be included as part of the court records in the civil proceedings.
The charges filed in the US court have triggered substantial economic and political fallout. Reports reveal that the Adani Group’s publicly traded companies initially suffered a combined market value loss of up to USD 34 billion, though their stocks have since partially recovered.
However, the Adani Group has strongly denied allegations of bribery and securities fraud levelled by US prosecutors against its chairman, Gautam Adani, and other key executives.
The group dismissed the charges as “baseless” and maintained that it operates with the highest standards of integrity and compliance. It further stated its intent to explore all possible legal remedies to address the accusations.
“As stated by the US Department of Justice itself, “the charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty.” All possible legal recourse will be sought,” the Adani Group spokesperson said.
Meanwhile, Andhra Pradesh, at the heart of the bribery allegations, is considering terminating a power contract with the Adani Group.
Similarly, Kenya has already scrapped two infrastructure projects with the conglomerate, and French energy giant TotalEnergies has announced a freeze on new financial contributions to its investments in Adani-related ventures until the allegations are resolved.
The indictment has also drawn international scrutiny. The US International Development Finance Corporation is now reassessing its proposal to provide USD 550 million in funding for a port development project in Sri Lanka, partially owned by the Adani Group.
The controversy has created political turbulence, with the Parliament’s first week of proceedings grinding to a halt. Opposition parties have demanded an extensive discussion and investigation into the allegations against Gautam Adani and his alleged close association with Prime Minister Narendra Modi.