A court in the United States has dismissed with prejudice the criminal charges against Gautam Adani, chairman of Adani Group, and his nephew Sagar Adani, bringing to an end nearly two years of proceedings in an alleged fraud and bribery case.
The US District Court for the Eastern District of New York granted the Justice Department’s Rule 48(a) motion to dismiss the indictment against Gautam Adani, Sagar Adani and former Adani Green CEO Vneet Jaain, agencies reported. The counts covered securities-fraud conspiracy, wire fraud conspiracy, and securities fraud.
Judge Nicholas Garaufis allowed the Justice Department’s motion after seeking additional explanations from prosecutors over their decision to abandon the case. A dismissal with prejudice permanently closes the criminal proceedings and bars the charges from being refiled, but does not amount to a judicial finding on the underlying allegations.
How the case began
The criminal case began in November 2024, when US prosecutors alleged that Gautam Adani, Sagar Adani, former AGEL CEO Vneet Jaain and other individuals conspired to pay USD 250 million in bribes to Indian government officials to secure solar power contracts projected to generate more than USD 2 billion in after-tax profits over two decades. Prosecutors also alleged that investors were misled while the group raised more than USD 3 billion through loans and bond issuances in US markets.
The Adani Group denied the criminal allegations consistently, describing them as baseless and maintaining that it had acted in accordance with regulatory requirements and applicable laws.
The SEC’s separate civil action has also been resolved through a final judgment against Gautam Adani, under which he consented to the order without admitting the allegations. The judgment requires Adani to pay a USD 6 million civil penalty to the SEC within 30 days.
Why the DoJ sought dismissal
In its submissions to the court, the Trump administration said continuing the prosecution no longer served the interests of justice, citing significant jurisdictional and evidentiary challenges, the predominantly Indian nature of the alleged conduct, the fact that Indian authorities had already examined the matter, the absence of identified investor losses, and broader public-interest considerations.
The DoJ also stated that the indictment, unsealed in November 2024 during the closing weeks of the Biden administration, had little realistic prospect of proceeding to trial and appeared to be a politically motivated “name and shame” exercise orchestrated by the outgoing administration.
Judge’s reasoning
In dismissing the charges, Garaufis said he was satisfied that Adani’s November 2024 pledge to invest USD 10 billion in the United States did not factor into the Justice Department’s decision, while acknowledging that judges’ role in reviewing federal prosecutors’ decisions to drop charges is limited.
Before approving the request, Garaufis directed the DoJ to publicly explain its reasons for seeking dismissal and required the defendants to file sworn declarations confirming there had been no promise, offer, quid pro quo or undisclosed agreement connected with the decision. In his sworn declaration, Gautam Adani categorically denied any such arrangement. After reviewing the government’s submissions and the sworn declarations, the court accepted the motion and permanently dismissed the case.
The dismissal means the criminal proceedings concluded before trial no witnesses were examined, no evidence was tested in court, and no judicial findings were made on the underlying allegations.
Background: Hindenburg fallout
The proceedings unfolded against the backdrop of heightened global scrutiny of the Adani Group following allegations made by now-shuttered short seller Hindenburg Research in January 2023. The report triggered a sharp sell-off in Adani Group stocks, erasing more than USD 150 billion in market value at its lowest point. The group has consistently rejected those allegations and maintained it complied with all applicable laws and disclosure requirements.
The legal basis for dismissal
The court found that the DoJ had met the legal requirements for dismissal on one ground: its argument that alleged statements about Adani Green’s anti-bribery policies and corporate compliance could amount to “inactionable puffery” broad statements that investors could not reasonably rely on which created legal risks for the prosecution.
The judge rejected or found insufficient several other arguments advanced by the government, including the claim that the alleged misconduct occurred almost entirely in India and therefore posed significant US securities-law jurisdictional risks. The court noted that the indictment itself alleged investors had committed funds in the United States and that the transactions involved the US financial system.
The court also found the government’s argument regarding the absence of sophisticated-investor deception insufficiently supported, though it noted it did not need to reach that issue since the puffery rationale alone was sufficient to dismiss the three counts.
The dismissal was with prejudice, meaning the charges cannot be refiled. The court said there was no concern about prosecutorial harassment, since the government had requested dismissal with prejudice and the appearing defendants had consented to it.
Adani’s reaction
Reacting to the ruling, Gautam Adani said he welcomed the court’s decision “with humility and deep respect for the judicial process,” adding that throughout the challenging period, his faith in “truth, fairness and the rule of law” had remained unwavering.
(With PTI inputs)