The criminal securities fraud case against Adani Group chairman Gautam Adani and his nephew Sagar Adani has been permanently dismissed by a US federal judge, bringing to an end nearly two years of prosecution without the matter going to trial.US District Judge Nicholas Garaufis of the Eastern District of New York approved the Justice Department’s motion under Rule 48(a), dismissing Counts Two, Three and Four of the indictment with prejudice. These counts related to securities fraud conspiracy, wire fraud conspiracy and securities fraud, and cannot now be brought again.The court, however, deferred a decision on Count One, which relates to alleged violations of the Foreign Corrupt Practices Act, and Count Five, concerning obstruction of justice, insofar as they apply to defendants who have not appeared before the court. The judge said those counts would remain pending until the government fulfils additional requirements under Rule 48(a).
Gautam Adani responds to ruling
Responding to the ruling, Gautam Adani said, “Truth has prevailed,” adding that he respected the judicial process and expressed gratitude to those who had supported the Adani Group during the proceedings. He also reaffirmed the conglomerate’s commitment to “nation-building” and “long-term value creation.”The indictment, which was unsealed in November 2024, alleged that executives of the Adani Group paid about $265 million in bribes to Indian officials to obtain solar power contracts expected to generate more than $2 billion in profits. It also alleged that investors were misled in transactions that helped raise nearly $4 billion in US financing and that certain other defendants destroyed evidence and made false statements to federal investigators.The Adani Group has consistently rejected the allegations, describing them as baseless.Judge Garaufis approved the Justice Department’s Rule 48(a) request to dismiss Counts Two, Three and Four against Gautam Adani, Sagar Adani and former Adani Green Chief Executive Officer Vneet Jaain. Those charges related to securities fraud conspiracy, wire fraud conspiracy and securities fraud.In its ruling, the court held that the Justice Department had satisfied the legal standard for dismissal on the basis that the alleged statements concerning Adani Green’s anti-bribery policies and corporate compliance could be viewed as “inactionable puffery”—generalised statements that investors could not reasonably rely upon—thereby creating legal challenges for pursuing the prosecution.The court’s order came after the Justice Department moved to withdraw the case following what it described as an extensive review. In its submissions, the department argued that pursuing the prosecution was no longer in the interests of justice, pointing to substantial jurisdictional and evidentiary hurdles, the fact that the alleged conduct was predominantly linked to India, the examination of the matter by Indian authorities, the absence of identified investor losses and broader public-interest considerations.The Justice Department also told the court that the indictment, which was unsealed in November 2024 during the final weeks of the Biden administration, had little realistic chance of reaching trial and appeared to be a politically driven “name and shame” exercise initiated by the outgoing administration.Before granting the request, US District Judge Nicholas Garaufis instructed the Justice Department to publicly set out its reasons for seeking dismissal. 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 stated that there had been no promise, offer, quid pro quo or undisclosed agreement in connection with the Justice Department’s decision. After considering the government’s submissions together with the sworn declarations, the court approved the motion and dismissed the case with prejudice.The ruling brought the criminal proceedings to an end before the case went to trial. As a result, no witnesses testified, no evidence was examined in court and the judiciary made no findings on the underlying criminal allegations.Separately, the US Securities and Exchange Commission’s civil case against Gautam Adani concluded with a final judgment under which he agreed to permanent injunctions relating to specified violations of US securities laws, without admitting the allegations other than those concerning jurisdiction.Adani said he 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,” he said in a post on X.
