According to Business-Today, a US federal judge has permanently dismissed the criminal securities fraud case against Adani Group chairman Gautam Adani and his nephew Sagar Adani, ending nearly two years of prosecution without the matter going to trial.
Dismissal covers three securities fraud counts
US District Judge Nicholas Garaufis of the Eastern District of New York approved the Justice Department's motion under Rule 48(a), dismissing Counts Two, Three and Four of the indictment with prejudice, Business-Today reported. Those charges — securities fraud conspiracy, wire fraud conspiracy and securities fraud — cannot now be brought again. The dismissal applies to Gautam Adani, Sagar Adani and former Adani Green Chief Executive Officer Vneet Jaain.
| Count | Charge | Status |
|---|---|---|
| Two | Securities fraud conspiracy | Dismissed with prejudice |
| Three | Wire fraud conspiracy | Dismissed with prejudice |
| Four | Securities fraud | Dismissed with prejudice |
| One | Foreign Corrupt Practices Act violations | Deferred — pending |
| Five | Obstruction of justice | Deferred — pending |
The court deferred a decision on Count One, which relates to alleged violations of the Foreign Corrupt Practices Act, and Count Five, concerning obstruction of justice, insofar as they apply to defendants who have not appeared before the court. The judge said those counts would remain pending until the government fulfils additional requirements under Rule 48(a).
What the indictment alleged
The indictment, unsealed in November 2024, alleged that executives of the Adani Group paid about $265 million in bribes to Indian officials to obtain solar power contracts expected to generate more than $2 billion in profits, according to Business-Today. It also alleged that investors were misled in transactions that helped raise nearly $4 billion in US financing and that certain other defendants destroyed evidence and made false statements to federal investigators. The Adani Group has consistently rejected the allegations, describing them as baseless.
Why the Justice Department withdrew
The court's order came after the Justice Department moved to withdraw the case following what it described as an extensive review, Business-Today reported. In its submissions, the department argued that pursuing the prosecution was no longer in the interests of justice, citing substantial jurisdictional and evidentiary hurdles, the fact that the alleged conduct was predominantly linked to India, the examination of the matter by Indian authorities, the absence of identified investor losses and broader public-interest considerations.
The Justice Department also told the court that the indictment, unsealed during the final weeks of the Biden administration, had little realistic chance of reaching trial and appeared to be a politically driven "name and shame" exercise initiated by the outgoing administration.
The court held that the Justice Department had satisfied the legal standard for dismissal on the basis that the alleged statements concerning Adani Green's anti-bribery policies and corporate compliance could be viewed as "inactionable puffery" — generalised statements that investors could not reasonably rely upon — thereby creating legal challenges for pursuing the prosecution.
Gautam Adani's response
Responding to the ruling, Gautam Adani said:
"Truth has prevailed."
He added that he respected the judicial process and expressed gratitude to those who had supported the Adani Group during the proceedings. He also reaffirmed the conglomerate's commitment to "nation-building" and "long-term value creation."
Before granting the request, Judge Garaufis instructed the Justice Department to publicly set out its reasons for seeking dismissal and directed the defendants to submit sworn declarations confirming that no promise, offer, quid pro quo or undisclosed agreement had influenced the department's decision. In his sworn declaration, Gautam Adani unequivocally stated that there had been no promise, offer, quid pro quo or undisclosed agreement in connection with the Justice Department's decision.
With the three securities-fraud counts permanently dismissed, the case is not fully concluded: Count One and Count Five remain pending as they apply to defendants who have not appeared before the court, until the government fulfils additional requirements under Rule 48(a), according to Business-Today.
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