US Court Dismisses Criminal Charges Against Gautam and Sagar Adani

NEW YORK , Aug 11: A US federal court has permanently dismissed the criminal case against Adani Group chairman Gautam Adani, his nephew Sagar Adani and former Adani Green Energy CEO Vneet Jaain, bringing the proceedings to an end before trial.

The US District Court for the Eastern District of New York approved the Justice Department’s request under Rule 48(a) to dismiss the indictment with prejudice. The ruling means the criminal charges cannot be refiled, although the dismissal does not constitute a judicial determination on the underlying allegations.

The case, filed in November 2024, involved allegations of securities-fraud conspiracy, wire-fraud conspiracy and securities fraud. US prosecutors had alleged that Gautam Adani, Sagar Adani, Vneet Jaain and others participated in a scheme involving approximately USD 250 million in alleged bribes to Indian government officials to secure solar power contracts.

Prosecutors had further alleged that the projects were expected to generate more than USD 2 billion in after-tax profits over two decades and that investors were misled as the group raised more than USD 3 billion through loans and bond offerings in US markets.

The Adani Group repeatedly rejected the allegations, calling them baseless and maintaining that its businesses had operated in compliance with applicable laws and regulatory requirements.

Justice Department cites prosecution concerns

The Trump administration argued that continuing the criminal prosecution was no longer in the interests of justice. The Justice Department pointed to jurisdictional and evidentiary difficulties, the predominantly India-based nature of the alleged conduct, previous scrutiny by Indian authorities and the absence of identified investor losses.

Prosecutors also argued that the case had limited prospects of reaching trial and described the indictment, which was unsealed during the final weeks of the Biden administration, as a politically motivated “name and shame” exercise.

Judge Nicholas Garaufis sought additional explanations before deciding whether to approve the dismissal. He also required the defendants to provide sworn declarations confirming that no promise, offer, quid pro quo or undisclosed agreement had been made in connection with the government’s decision.

Gautam Adani subsequently submitted a sworn declaration denying any such arrangement.

After reviewing the government’s submissions and the defendants’ declarations, the court approved the dismissal.

Court identifies legal weakness in prosecution

The court found that the government had established sufficient grounds for dismissal based on concerns surrounding statements about Adani Green Energy’s anti-bribery policies and compliance practices.

Judge Garaufis said such statements could potentially be viewed as broad corporate assurances, or “inactionable puffery”, that investors could not reasonably rely upon. This created a legal obstacle for the prosecution.

The judge did not accept or find sufficient several other arguments advanced by the government. These included concerns over US securities-law jurisdiction, given that much of the alleged conduct occurred in India.

The court noted that the indictment nevertheless alleged that investors committed funds in the United States and that transactions involved the US financial system.

The judge also found that the government’s argument concerning the absence of sophisticated-investor deception did not independently provide sufficient grounds. However, he said it was unnecessary to resolve that issue because the puffery rationale was enough to support dismissal.

Adani welcomes court decision

Gautam Adani welcomed the ruling and expressed confidence in the judicial process.

“Throughout this challenging period, our faith in truth, fairness and the rule of law remained unwavering,” Adani said in a post on X, adding that the group would remain focused on building businesses and creating long-term value.

The separate civil proceedings brought by the US Securities and Exchange Commission have also been resolved through a final judgment involving Gautam Adani. He consented to the order without admitting the allegations and is required to pay a USD 6 million civil penalty to the SEC within 30 days.

Case ends without trial

The dismissal means the criminal proceedings concluded without a trial. No witnesses were examined, evidence was not tested before a jury and the court made no findings establishing the truth or falsity of the underlying criminal allegations.

The decision also closes a case that had drawn considerable international attention to the Adani Group.

The proceedings followed heightened scrutiny of the conglomerate after allegations published by short seller Hindenburg Research in January 2023 triggered a major sell off in Adani Group shares. At its lowest point, the group’s listed companies lost more than USD 150 billion in combined market value.

Adani Group has consistently rejected the Hindenburg allegations and maintained that it complied with applicable laws and disclosure requirements.

With the latest US court ruling, the criminal charges against Gautam Adani, Sagar Adani and Vneet Jaain have been permanently dismissed, ending the federal prosecution before any trial could take place.