New York, United States – A US judge on Monday dismissed criminal charges against Indian billionaire Gautam Adani, after the justice department said it had decided to abandon the fraud and bribery case.
The Brooklyn-based district judge Nicholas Garaufis's decision to grant federal prosecutors' rare attempt to toss the case came after he inquired into their reasons for doing so, including by asking Adani whether anything was promised in exchange for the dropping of the case. In November 2024, before the charges were unsealed, Adani had promised to invest $10bn in the United States.
Adani was charged in 2024 with agreeing to bribe Indian government officials so a subsidiary of his Adani Group could win approval to develop a solar energy plant, then misleading US investors by providing reassuring information about his company's anti-corruption practices.
Key developments:
- Charges dropped: US judge dismisses fraud and bribery case against Gautam Adani
- Justice Department: Prosecutors abandoned the case on 18 May
- Original charges: Agreed to bribe Indian officials for solar energy plant approval
- Investor fraud: Allegedly misled US investors about anti-corruption practices
- $10bn pledge: Adani promised to invest $10bn in the US in November 2024
- Judge's inquiry: Garaufis asked if anything was promised in exchange
- Adani's response: Sworn declaration said no agreement exchanging anything for dismissal
- Justice Department filing: Case was primarily foreign, hard to prove, inconsistent with priorities
- Denial: McCotter denied media reports linking dismissal to investment pledge
- Trump administration: Latest instance of prosecutors dropping high-profile white-collar cases
Adani Group has consistently denied wrongdoing. Adani himself has not appeared in US court to respond to the charges. On 18 May, the justice department announced it would no longer pursue the case. That marked the latest instance in which federal prosecutors had sought to drop a high-profile white-collar criminal prosecution during Donald Trump's second term in the White House.
Legal experts say US judges have little discretion to compel prosecutors to continue with criminal cases they no longer wish to pursue, but the charges cannot be formally dismissed without a judge's approval.
Garaufis asked the justice department to justify its decision to drop the charges, writing that its "bland and conclusory" announcement did not give him enough information.
Justice Department's Justification
In a 4 July court filing, Trent McCotter, a senior justice department official, said the case was primarily foreign, hard to prove and inconsistent with the agency's current priorities.
In the filing, McCotter also denied as false what he called media stories suggesting he sought to dismiss the case in part because of a promise by Adani to invest money in the United States.
In response, Garaufis asked Adani whether he was "aware of any agreement exchanging anything for the dismissal of the indictment".
Adani's Response
In a sworn declaration filed in court on 15 July, Adani said he was not aware of any such agreement. He acknowledged having previously promised to invest $10bn in the US and said his lawyers told the justice department in meetings that the pledge "might be part of a resolution of these matters".
Robert Giuffra, a lawyer for Adani, said in a 15 July court filing that the justice department had told him that it would not consider the Adani Group's willingness to invest in the US as part of any resolution.
Background of the Case
The charges against Adani stemmed from allegations that he agreed to bribe Indian government officials to secure approval for a solar energy plant development project. Prosecutors also alleged that Adani misled US investors by providing false assurances about his company's anti-corruption practices.
The Adani Group has consistently denied any wrongdoing throughout the legal process.
Trump Administration Pattern
The dismissal marks the latest instance in which federal prosecutors have sought to drop a high-profile white-collar criminal prosecution during Trump's second term. Legal experts say such moves have raised questions about the independence of the justice department and its priorities.
⚖️ The Big Picture
A US judge has dismissed criminal fraud and bribery charges against Indian billionaire Gautam Adani after the justice department abandoned the case, citing its primarily foreign nature and difficulty to prove. The dismissal came after Judge Nicholas Garaufis scrutinized prosecutors' reasons, including inquiring whether Adani's $10bn US investment pledge was linked to the decision. Adani denied any such agreement in a sworn declaration. The case, which alleged Adani bribed Indian officials for a solar energy project and misled US investors, marks the latest high-profile white-collar prosecution dropped during Trump's second term, raising questions about the justice department's priorities.
What's Next
Key developments to watch:
- Adani Group: Impact of dismissal on company operations and market confidence
- Justice Department: Continued scrutiny over white-collar prosecutions
- US investment: Whether Adani follows through on $10bn pledge
- Legal precedent: Implications for future foreign bribery cases
- Congressional oversight: Potential hearings on DOJ decision-making
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