US court drops criminal charges against Gautam Adani and associates.
A US judge dismissed criminal charges against the Adanis, including allegations involving securities fraud and wire fraud.
- A US court dismissed all criminal charges against Gautam Adani, Sagar Adani, and Vneet Jaain “with prejudice,” ending the case permanently.
- The charges related to an alleged $265 million bribery scheme and securities fraud tied to solar energy contracts in India.
- Judge Nicholas Garaufis criticized the Justice Department’s handling of the dismissal, calling it “highly unusual” and noting concerns about Trent McCotter’s singular role in the decision.
- The Adanis agreed to pay $18 million to settle civil SEC charges without admitting guilt.
- Gautam Adani said he was unaware of any quid pro quo for the dismissal and expressed “deep respect” for the US judicial process.
On Monday, a US federal court brought an end to a nearly two-year legal ordeal for Gautam Adani, his nephew Sagar Adani, and their associate Vneet Jaain by dismissing all criminal charges against them at the request of the US government. Judge Nicholas Garaufis of the United States District Court for the Eastern District of New York threw out the securities and wire fraud counts “with prejudice,” meaning the case cannot be reopened, even as he voiced sharp concerns about how the Trump Justice Department handled the decision to walk away from the prosecution.
A long legal saga
The drama began in November 2024, when the US Justice Department unsealed an indictment alleging that the Adani group and its associates had been involved in a $265 million bribery scheme to win lucrative solar energy contracts with Indian government entities. The Adanis were accused of defrauding US and international investors by misrepresenting the group’s anti-corruption activities, while associates were charged with attempting to obstruct US investigations by destroying evidence. The US Securities and Exchange Commission (SEC) separately filed civil charges against Gautam and Sagar Adani over the same allegations.
After months of legal wrangling, the Justice Department told the court in May that it would no longer pursue the criminal case. In a July filing, Principal Associate Deputy Attorney General Trent McCotter went further, saying the charges should not have been brought in the first place because they largely concerned conduct in India and diverted resources from domestic priorities. Media reports suggested the Adani group’s offer to invest $10 billion in the US played a role in the decision, though officials insisted investment promises would not influence prosecutorial choices.
Judge’s scrutiny and Adani’s affidavit
Unusually, Judge Garaufis pressed the Justice Department to explain its abrupt change of heart, calling its motion to dismiss “terse, bland and conclusory.” He also ordered Gautam Adani to submit a sworn affidavit answering whether he was aware of any quid pro quo offered in exchange for the case being dropped. In his response, Adani said he was not aware of any such deal, though he acknowledged his lawyers had suggested that his publicly stated intent to invest $10 billion in the US might be part of a resolution. He added that the Justice Department had made clear that investment promises would not affect its decision to pursue charges.
In Monday’s order, Garaufis said he was satisfied that the $10 billion investment commitment was a “non-consideration” in the department’s decision to stop pursuing charges. But he took issue with the broader move to dismiss all charges against all defendants, singling out McCotter for criticism. The judge noted that McCotter appeared to have overridden the professional opinions of numerous federal officials and made the decision largely in collaboration with defense counsel, seemingly without input from FBI and SEC agents who investigated the case or the attorneys who originally brought it.
Civil settlement and what remains
Alongside the criminal dismissal, the court finalized a settlement between the Adanis and the SEC. Under the agreement, Gautam and Sagar Adani will pay $18 million to the US government without admitting guilt, formally resolving the civil securities fraud charges. Judge Garaufis reserved judgment on bribery and obstruction of justice charges against other defendants in the case, saying he needed more information before deciding whether to dismiss those counts as well.
Reaction and implications
Gautam Adani welcomed the dismissal, saying his faith in “truth, fairness and the rule of law” had remained unwavering. In a statement, he expressed “deep respect for the judicial process” and said the group would continue “building for our nation, creating value that outlasts us and serving. For US prosecutors, the episode raises questions about how high-profile cases involving foreign billionaires are weighed against diplomatic and economic considerations.