'Faith in truth, fairness': US court drops all criminal charges against Gautam, Sagar Adani

A US court has brought an end to the criminal proceedings against Adani Group chairman Gautam Adani, his nephew Sagar Adani and associate Vneet Jaain, nearly two years after the case was filed.

Judge Nicholas Garaufis of the United States District Court for the Eastern District of New York dismissed the charges at the request of the US government. The dismissal was with prejudice, meaning the criminal prosecution cannot be reopened.

The court also approved a separate settlement between the Adanis and the US Securities and Exchange Commission (SEC). Under the agreement, the former will pay $18 million to the US government without admitting guilt.

Gautam Adani welcomes US court’s decision

Reacting to the judgment, Gautam Adani, in a post on X, said, "I welcome the US court’s decision with humility and deep respect for the judicial process.

Throughout this challenging period, our faith in truth, fairness and the rule of law remained unwavering.

My deepest gratitude to those who never lost faith in us, in the system and in India’s capacity for justice. We will continue doing what matters: building for our nation, creating value that outlasts us and serving a purpose larger than ourselves.

That is our commitment. Jai Hind."

What was the case against the Adanis?

The case dates back to November 2024, when the US Justice Department unsealed an indictment accusing the Adani Group and its associates of being involved in a $265 million bribery scheme.

Prosecutors alleged that the scheme was aimed at securing lucrative solar energy contracts with Indian government entities. The Adanis were also accused of misleading US and international investors about the group's anti-corruption practices.

Other associates faced allegations of attempting to obstruct investigations by US authorities, including through the destruction of evidence.

The SEC separately brought civil securities fraud charges against Gautam and Sagar Adani.

Why did the US government drop the charges?

The Justice Department informed the court in May that it would no longer pursue the case against the Adanis and their associates.

In a July filing, Principal Associate Deputy Attorney General Trent McCotter argued that the charges should not have been brought. He said the case largely concerned conduct in India and had diverted resources from domestic matters.

The decision drew controversy, with reports suggesting that the Adani Group's stated plan to invest $10 billion in the US may have influenced the decision.

Judge Garaufis subsequently demanded an explanation from the Justice Department, describing its initial request to dismiss the indictment as “terse, bland and conclusory”.

He also asked Gautam Adani to provide a sworn affidavit addressing whether he knew of any quid pro quo linked to the decision to end the case.

Judge raises concerns over dismissal

Adani said he was unaware of any such offer. He also said his lawyers had suggested that his proposed US investment could potentially form part of a resolution, while the Justice Department had made clear that investment commitments would not influence its decision.

In his order, Garaufis said the court was satisfied that the $10 billion investment proposal was a “non-consideration” in the decision to drop the charges.

However, the judge questioned how the Justice Department handled the matter, particularly the role played by McCotter.

“As noted throughout this opinion, the irregularities in the decision to dismiss the Indictment are concerning. On the current record, McCotter appears to have eschewed the professional opinions of innumerable officials from various federal offices and replaced them with his singular judgment.

The fact that McCotter came to this decision largely in collaboration with defense counsel, and seemingly without input from the FBI and SEC agents who investigated the alleged misconduct, or the attorneys from the Department, SEC, and US Attorney's Office who brought the case, appears to be highly unusual,” reads the judgement.

The judge also noted that McCotter was the sole decision-maker behind the move and had acknowledged that current or former government lawyers could disagree with the decision.

Separately, Adani Enterprises Limited agreed in May to pay $275 million to settle with the US Treasury's Office of Foreign Assets Control over apparent violations of US sanctions on Iran.