Adani Green, Adani Power to Adani Enterprises shares: Why are Adani Group stocks nosediving?

Shares of Adani Group stocks came under sharp selling pressure on Friday, January 23, after reports emerged that the US Securities and Exchange Commission (SEC) is seeking court approval to move ahead with legal steps involving senior members of the conglomerate’s leadership.

According to a Bloomberg report, the SEC has approached a US district judge requesting permission to proceed with issuing legal summons to Adani Group Chairman Gautam Adani and his nephew Sagar Adani. The application was made earlier this week before US District Judge Nicholas Garaufis in Brooklyn, New York.

The regulator has reportedly asked the court to allow the use of alternative methods to formally notify Gautam and Sagar Adani about the legal action. This request follows what the SEC described as multiple unsuccessful attempts to serve summons through conventional channels.

Bloomberg reported that the SEC told the court it had repeatedly sought assistance from the Indian government to deliver the summons but had not been successful so far. As a result, the US regulator is now seeking judicial approval to adopt other legally permissible routes to ensure that the individuals concerned are formally informed of the proceedings.

The development weighed heavily on investor sentiment, triggering a sharp decline across several Adani Group stocks during Friday’s trading session.

Adani Group Stocks: Share price trend

Adani Group stocks came under heavy selling pressure, with sharp losses recorded across the board. Adani Green Energy was the worst hit, sliding 7.7% to its intraday low of ₹835. Adani Enterprises and Adani Energy Solutions both declined 5.7%, touching their respective day’s lows of ₹1,968.20 and ₹872.10. Adani Ports fell 4.5% to ₹1,351, while Adani Total Gas dropped 4.1% to ₹525.60. Adani Power also weakened, shedding 3% to hit a low of ₹136.85. Among cement stocks, Ambuja Cements slipped 2.5%, while ACC declined 1.4%, reflecting broader investor nervousness across the group.

Adani Group vs SEC: What is happening?

The SEC has approached a US federal court seeking permission to serve legal summons to Gautam Adani and his nephew Sagar Adani through alternative methods, including email and communication via their US-based legal counsels.

Under US law, summons are generally required to be served in person. However, the SEC told the court that it faced repeated obstacles in doing so through official channels in India. The regulator said its requests to India’s Ministry of Law and Justice for assistance were rejected twice over the past 14 months.

The SEC argued that alternative service is justified as both Gautam and Sagar Adani appear to be fully aware of the proceedings. It noted that Gautam Adani has publicly commented on the case, including at the Adani Group’s AGM in June 2025, and that both have hired US law firms to represent them. In a filing dated January 21, 2026, SEC counsel Christopher M. Colorado said these facts show the defendants are informed and actively managing their legal response, making service through lawyers and email consistent with due process.

As per SEC disclosures, Sagar Adani is represented by Hecker Fink LLP, while Gautam Adani has engaged Kirkland & Ellis LLP and Quinn Emanuel Urquhart & Sullivan LLP.

The SEC also highlighted procedural hurdles under the Hague Convention, saying its requests were returned in April 2025 and again in December 2025, leading it to conclude that further attempts may not succeed.

The case is linked to US prosecutors’ allegations from November 20, 2024, claiming over $250 million in bribes were paid between 2020 and 2024 to secure solar contracts. The US Department of Justice is conducting a criminal probe, while the SEC is pursuing a civil case against Gautam Adani, Sagar Adani and former Adani Green Energy CEO Vneet Jaain.

(With inputs from Bloomberg)