Adani, Nephew Settle SEC Fraud Case for $18 Million as US Criminal Charges May Fade

CNBC, Reuters, and AP contributed to this report.

US regulators have settled civil fraud claims against Indian billionaire Gautam Adani and his nephew, Sagar Adani, in a case tied to alleged bribery around solar energy contracts in India.

Under the agreement, Gautam Adani will pay $6 million and Sagar Adani $12 million, according to court filings. Neither man will admit or deny the SEC’s allegations.

The settlement sent shares of Adani Enterprises and Adani Green Energy lower at the open on Friday, though both later trimmed their losses. Adani Enterprises is still up about 24% this year, while Adani Green has gained around 41%.

The SEC had accused the two of misleading investors by hiding the role of an alleged bribery scheme in winning Indian solar contracts. The broader case also centered on claims that Adani Green and related entities raised money from US investors while presenting a strong anti-bribery compliance framework.

Adani Green said in a filing that it is not part of the SEC proceedings and that no charges have been brought against the company.

The deal comes as reports suggest US prosecutors may also drop the related criminal case. A federal indictment in New York last November accused Gautam Adani and several others of securities fraud, wire fraud conspiracy and obstruction, alleging more than $250 million in bribes tied to Indian officials.

The Adani Group has denied the allegations throughout, calling them baseless.

For Gautam Adani, the settlement could ease some of the legal pressure hanging over his business empire, which spans ports, power, infrastructure and renewable energy. But the group still faces scrutiny, and the reputational damage from the case has already been costly.