US Federal Court Permanently Dismisses Key Criminal Charges Against Gautam Adani and Adani Group

Significant Relief for Conglomerate as Justice Department Cites Jurisdictional Hurdles and Public Interest

New York, USA – [Date of Publication] – In a major development providing substantial relief to the Adani Group, a US federal judge has permanently dismissed several key criminal securities fraud charges against chairman Gautam Adani and his nephew Sagar Adani. This decision brings an end to nearly two years of prosecution without the case proceeding to trial.

US District Judge Nicholas Garaufis of the Eastern District of New York granted the Justice Department’s motion under Rule 48(a), thereby dismissing Counts Two, Three, and Four of the indictment with prejudice. These charges, which encompassed securities fraud conspiracy, wire fraud conspiracy, and securities fraud, can no longer be re-filed. The court’s decision marks a pivotal moment for the Indian conglomerate, which has consistently denied all allegations.

However, the court has deferred a decision on Count One, pertaining to alleged violations of the Foreign Corrupt Practices Act, and Count Five, concerning obstruction of justice, specifically for defendants who have not yet appeared before the court. Judge Garaufis stated that these counts would remain pending until the government fulfills additional requirements under Rule 48(a).

Gautam Adani Responds: “Truth Has Prevailed”

Reacting to the ruling, Gautam Adani issued a statement affirming, “Truth has prevailed.” He expressed deep respect for the judicial process and extended gratitude to those who supported the Adani Group throughout the proceedings. Mr. Adani also reiterated the conglomerate’s steadfast commitment to “nation-building” and “long-term value creation.”

The original indictment, unsealed in November 2024, had alleged that Adani Group executives paid approximately $265 million in bribes to Indian officials to secure solar power contracts, which were projected to generate over $2 billion in profits. It also claimed that investors were misled in transactions that facilitated the raising of nearly $4 billion in US financing, and that certain defendants destroyed evidence and made false statements to federal investigators. The Adani Group has consistently and vehemently rejected these allegations, labeling them as baseless.

Judge Garaufis approved the Justice Department’s request to dismiss Counts Two, Three, and Four against Gautam Adani, Sagar Adani, and former Adani Green Chief Executive Officer Vneet Jaain. The court’s ruling highlighted that the Justice Department had met the legal standard for dismissal, noting that the alleged statements concerning Adani Green’s anti-bribery policies and corporate compliance could be considered “inactionable puffery.” This classification suggests that these were generalized statements upon which investors could not reasonably rely, thus posing significant legal challenges for the prosecution.

The court’s decision followed the Justice Department’s motion to withdraw the case, citing an extensive review. In its submissions, the department argued that continuing the prosecution was no longer in the interests of justice. It pointed to substantial jurisdictional and evidentiary hurdles, emphasizing that the alleged conduct was predominantly linked to India and was already under examination by Indian authorities. Furthermore, the department cited the absence of identified investor losses and broader public-interest considerations.

Notably, the Justice Department also informed the court that the indictment, unsealed in November 2024 during the final weeks of the previous US administration, had little realistic chance of reaching trial. It was described as a potentially politically driven “name and shame” exercise initiated by the outgoing administration.

Before granting the dismissal request, Judge Garaufis had instructed the Justice Department to publicly articulate its reasons. He also directed the defendants to submit sworn declarations confirming that no promise, offer, quid pro quo, or undisclosed agreement had influenced the department’s decision. In his sworn declaration, Gautam Adani unequivocally affirmed that no such arrangements had been made. After reviewing the government’s submissions and the sworn declarations, the court approved the motion, dismissing the case with prejudice.

This ruling effectively concludes the criminal proceedings without a trial, meaning no witnesses testified, no evidence was formally examined in court, and the judiciary made no findings on the underlying criminal allegations.

Separately, the US Securities and Exchange Commission’s (SEC) civil case against Gautam Adani concluded with a final judgment. Under this judgment, Mr. Adani agreed to permanent injunctions related to specified violations of US securities laws, without admitting the allegations beyond those concerning jurisdiction.

Reflecting on the outcome, Mr. Adani posted on X, stating, “I welcomed the ruling 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. My deepest gratitude to those who never lost faith in us, in the system and in India’s capacity for justice. We will continue doing what matters: building for our nation, creating value that outlasts us and serving a purpose larger than ourselves. That is our commitment.”