The U.S. Securities and Exchange Commission has summoned Gautam Adani, India's second-richest man, for questioning over fraud allegations, sending shares of the conglomerate's companies tumbling up to 8% in early trading Thursday.
The summons marks a dramatic escalation of American regulatory scrutiny into the Ahmedabad-based group, which controls critical infrastructure from ports to power plants across India. Adani Group companies collectively shed ₹47,000 crore ($5.6 billion) in market value within hours, according to CNBC.
A billion people aren't a statistic - they're a billion stories. For India's 1.4 billion citizens, the Adani Group's fate matters beyond stock tickers. The conglomerate operates six of India's 12 major ports, accounts for nearly a quarter of thermal power generation, and manages Mumbai's international airport.
The SEC investigation focuses on securities fraud and market manipulation, building on November 2024 charges accusing Gautam Adani and seven others of a $250 million bribery scheme to secure solar contracts.
Adani has consistently denied allegations. The group calls charges "baseless" and vows to "vigorously defend."
But markets don't wait. Adani Green Energy fell 8.2%, Adani Ports dropped 6.4%, flagship Adani Enterprises declined 5.7%. The selloff mirrors February 2023's crisis when Hindenburg Research triggered a $150 billion wipeout.
This time, scrutiny carries federal law enforcement weight - testing India's corporate governance at the highest level. The SEC summons requires to testify, potentially under oath.
