A US Federal Court in the Eastern District of New York has officially dismissed with prejudice the criminal fraud and bribery charges against Adani Group Chairman Gautam Adani, his nephew Sagar Adani, and former Adani Green Energy CEO Vneet Jaain.
The ruling by US District Judge Nicholas G. Garaufis granted the Department of Justice’s (DOJ) Rule 48(a) motion, permanently closing the criminal case and barring the government from refiling the charges.
Key Highlights of the Court Order
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Dismissal of Primary Charges:
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The court dropped Counts Two, Three, and Four of the indictment, which included conspiracy to commit securities fraud, conspiracy to commit wire fraud, and substantive securities fraud.
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The decision brings an end to nearly two years of criminal proceedings originating from a November 2024 indictment over an alleged $265 million solar power bribery scheme.
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DOJ’s Rationale for Dropping the Case:
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Senior Justice Department official Trent McCotter cited prosecutorial discretion, noting significant jurisdictional challenges, the predominantly foreign (Indian) nature of the alleged conduct, the absence of identified investor losses, and shifting department priorities.
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Prosecutors confirmed that Adani’s earlier offer to invest $10 billion in the US economy was not a factor or condition in the government’s decision to drop the prosecution.
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Judge’s Observations & Judicial Concerns:
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While granting the DOJ’s motion under prosecutorial discretion, Judge Garaufis described the circumstances leading to the dismissal as “highly unusual”.
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The judge criticized procedural handling, noting that the decision was reached primarily between senior DOJ leadership and defense counsel without active input from the FBI and SEC investigating agents or the trial attorneys who originally brought the case.
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Resolution of Parallel SEC & Civil Matters
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SEC Civil Settlement: Gautam Adani and Sagar Adani resolved related civil proceedings brought by the US Securities and Exchange Commission (SEC) by consenting to final judgments—without admitting or denying the allegations—and agreeing to pay civil penalties of $6 million and $12 million, respectively.
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Sanctions Resolution: Adani Enterprises separately reached a $275 million settlement with the US Treasury Department regarding historic Iran sanctions compliance inquiries.
Adani Group Response
Responding on social platform X, Gautam Adani welcomed the court’s order: “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.”
