US court permanently dismisses criminal case against Adanis; truth has prevailed, says Gautam Adani
A US federal judge has permanently dismissed the criminal securities-fraud case against Adani Group chairman Gautam Adani and his nephew Sagar, closing nearly two years of prosecution without a trial.
US District Judge Nicholas Garaufis of the Eastern District of New York granted the Justice Department’s Rule 48(a) motion, dismissing Counts Two, Three and Four of the indictment — covering securities-fraud conspiracy, wire-fraud conspiracy and securities fraud — with prejudice, meaning the charges cannot be refiled.
The court reserved judgment on Count One (Foreign Corrupt Practices Act violations) and Count Five (obstruction of justice) as they relate to non-appearing defendants, pending further compliance by the government with Rule 48(a).
“Truth has prevailed,” Gautam Adani said in response to the ruling, adding that he respected the judicial process and thanked those who had stood by the Group through the proceedings, while reaffirming its commitment to “nation-building” and “long-term value creation.” The indictment, unsealed in November 2024, alleged Adani Group executives paid roughly USD 265 million in bribes to Indian officials to secure solar-power contracts projected to generate more than USD 2 billion in profits, while misleading investors who helped raise nearly USD 4 billion in US financing, and that other defendants destroyed evidence and lied to federal investigators.Geographic Reference
The Adani Group has consistently denied the allegations, calling them baseless.
US District Judge Nicholas Garaufis granted the Justice Department’s Rule 48(a) motion to dismiss Counts Two, Three and Four of the indictment against Gautam Adani, Sagar Adani and former Adani Green CEO Vneet Jaain.
The counts covered securities-fraud conspiracy, wire-fraud conspiracy and securities fraud.
The court found that the DOJ had met the legal requirements for dismissal on one ground: its argument that alleged statements about Adani Green’s anti-bribery policies and corporate compliance could amount to “inactionable puffery” — broad statements that investors could not reasonably rely on — creating legal risks for the prosecution.
The order followed the Justice Department’s decision to seek dismissal after an extensive review of the case. In its submissions before the court, the government said continuing the prosecution no longer served the interests of justice, citing significant jurisdictional and evidentiary challenges, the predominantly Indian nature of the alleged conduct, the fact that Indian authorities had examined the matter, the absence of identified investor losses and broader public-interest considerations.
The DoJ also stated that the indictment, unsealed in November 2024 during the closing weeks of the previous Biden administration, had little realistic prospect of proceeding to trial and appeared to have been a politically motivated “name and shame” exercise orchestrated by the outgoing administration.
Before approving the request, Judge Nicholas Garaufis directed the DoJ to publicly explain its reasons for seeking dismissal and required the defendants to file sworn declarations confirming there had been no promise, offer, quid pro quo or undisclosed agreement connected with the decision.
In his sworn declaration, Gautam Adani categorically denied the existence of any promise, offer, quid pro quo or undisclosed agreement relating to the DoJ’s decision. After reviewing the government’s submissions and the sworn declarations, the court accepted the motion and permanently dismissed the case.
The dismissal means the criminal proceedings concluded before trial. No witnesses were examined, no evidence was tested in court and no judicial findings were made on the underlying criminal allegations.
Separately, the US Securities and Exchange Commission’s civil action against Gautam Adani has resulted in a final judgment under which he consented to permanent injunctions covering specified US securities-law violations without admitting the allegations, except as to jurisdiction.
Adani welcomed the decision “with humility and deep respect for the judicial process”.
US District Judge Nicholas Garaufis of the Eastern District of New York granted the Justice Department’s Rule 48(a) motion, dismissing Counts Two, Three and Four of the indictment — covering securities-fraud conspiracy, wire-fraud conspiracy and securities fraud — with prejudice, meaning the charges cannot be refiled.
The court reserved judgment on Count One (Foreign Corrupt Practices Act violations) and Count Five (obstruction of justice) as they relate to non-appearing defendants, pending further compliance by the government with Rule 48(a).
“Truth has prevailed,” Gautam Adani said in response to the ruling, adding that he respected the judicial process and thanked those who had stood by the Group through the proceedings, while reaffirming its commitment to “nation-building” and “long-term value creation.” The indictment, unsealed in November 2024, alleged Adani Group executives paid roughly USD 265 million in bribes to Indian officials to secure solar-power contracts projected to generate more than USD 2 billion in profits, while misleading investors who helped raise nearly USD 4 billion in US financing, and that other defendants destroyed evidence and lied to federal investigators.Geographic Reference
The Adani Group has consistently denied the allegations, calling them baseless.
US District Judge Nicholas Garaufis granted the Justice Department’s Rule 48(a) motion to dismiss Counts Two, Three and Four of the indictment against Gautam Adani, Sagar Adani and former Adani Green CEO Vneet Jaain.
The counts covered securities-fraud conspiracy, wire-fraud conspiracy and securities fraud.
The court found that the DOJ had met the legal requirements for dismissal on one ground: its argument that alleged statements about Adani Green’s anti-bribery policies and corporate compliance could amount to “inactionable puffery” — broad statements that investors could not reasonably rely on — creating legal risks for the prosecution.
The order followed the Justice Department’s decision to seek dismissal after an extensive review of the case. In its submissions before the court, the government said continuing the prosecution no longer served the interests of justice, citing significant jurisdictional and evidentiary challenges, the predominantly Indian nature of the alleged conduct, the fact that Indian authorities had examined the matter, the absence of identified investor losses and broader public-interest considerations.
The DoJ also stated that the indictment, unsealed in November 2024 during the closing weeks of the previous Biden administration, had little realistic prospect of proceeding to trial and appeared to have been a politically motivated “name and shame” exercise orchestrated by the outgoing administration.
Before approving the request, Judge Nicholas Garaufis directed the DoJ to publicly explain its reasons for seeking dismissal and required the defendants to file sworn declarations confirming there had been no promise, offer, quid pro quo or undisclosed agreement connected with the decision.
In his sworn declaration, Gautam Adani categorically denied the existence of any promise, offer, quid pro quo or undisclosed agreement relating to the DoJ’s decision. After reviewing the government’s submissions and the sworn declarations, the court accepted the motion and permanently dismissed the case.
The dismissal means the criminal proceedings concluded before trial. No witnesses were examined, no evidence was tested in court and no judicial findings were made on the underlying criminal allegations.
Separately, the US Securities and Exchange Commission’s civil action against Gautam Adani has resulted in a final judgment under which he consented to permanent injunctions covering specified US securities-law violations without admitting the allegations, except as to jurisdiction.
Adani welcomed the decision “with humility and deep respect for the judicial process”.