US court drops criminal charges against Gautam, Sagar Adani and associate Vneet Jaain

A US federal court on Monday dismissed criminal charges against Adani Group chairman Gautam Adani, his nephew Sagar Adani and associate Vneet Jaain, bringing an end to the criminal case at the request of the US government.

Judge Nicholas Garaufis of the US District Court for the Eastern District of New York dismissed the securities and wire fraud charges with prejudice, meaning they cannot be revived. However, the judge raised concerns over what he described as “irregularities” in the Trump administration’s Justice Department decision to abandon the prosecution.

The court also approved a settlement between the Adanis and the US Securities and Exchange Commission (SEC), under which the two will pay $18 million to the US government without admitting or denying wrongdoing, resolving related civil securities fraud allegations.

Garaufis, however, deferred a decision on bribery and obstruction-related charges involving other defendants.

What were the allegations?

The case dates back to November 2024, when the US Justice Department unsealed an indictment accusing Adani and his associates of participating in a $265 million bribery scheme aimed at securing lucrative solar power contracts with Indian government entities.

The indictment also alleged that the defendants misled US and international investors about the Adani Group’s anti-corruption practices. Other associates were accused of attempting to obstruct US investigations by destroying evidence.

The SEC separately filed civil charges against Gautam and Sagar Adani over the alleged misconduct.

In May, the Justice Department told the court that it would no longer pursue the case against the Adanis and their associates. Principal Associate Deputy Attorney General Trent McCotter later argued that the charges should not have been brought because the allegations largely concerned conduct in India and prosecuting the case diverted resources from domestic priorities.

The decision triggered controversy, with media reports suggesting that the Adani Group’s plans to invest $10 billion in the US may have influenced the Justice Department’s decision.

Judge questions DOJ’s handling of case

Garaufis had earlier ordered the Justice Department to explain its decision, describing its motion to dismiss as “terse, bland and conclusory”.

The judge also directed Gautam Adani to submit a sworn affidavit addressing whether he knew of any quid pro quo offered in exchange for the US government dropping the case.

Adani said he was unaware of any such arrangement. He acknowledged that his lawyers had suggested his publicly announced plan to invest $10 billion in the US could potentially form part of a resolution, but said the Justice Department had made clear that investment commitments would not influence its decision.

In Monday’s ruling, Garaufis said the information provided by the Justice Department satisfied him that Adani’s $10 billion investment proposal was a “non-consideration” in the decision to end the prosecution.

However, the judge sharply questioned the broader decision-making process.

“As noted throughout this opinion, the irregularities in the decision to dismiss the Indictment are concerning,” Garaufis wrote, criticising McCotter for appearing to replace the professional assessments of officials across multiple federal agencies with his own judgment.

The judge also said it was “highly unusual” that McCotter appeared to make the decision largely in collaboration with defence lawyers and without input from FBI and SEC investigators or prosecutors involved in the case.

Garaufis noted that McCotter was the sole decision-maker in the move to dismiss the charges and had acknowledged that current or former government lawyers could disagree with the decision.

Separately, in May, Adani Enterprises Ltd reached a $275 million settlement with the US Treasury’s Office of Foreign Assets Control over alleged violations of US sanctions on Iran.