Adani case dropped, but judge questions how US reached decision
NEW YORK — A US judge dismissed criminal charges against Indian billionaire Gautam Adani after prosecutors sought to abandon the case, but criticised the process behind that decision. The ruling, reported by the BBC on 11 August, ended the prosecution with prejudice, preventing the same charges from being brought again.
Judge Nicholas Garaufis questioned senior Justice Department official R Trent McCotter’s dealings with Adani’s lawyers without meaningful consultation with the investigating team. The department cited difficulties prosecuting overseas conduct and changing enforcement priorities. Garaufis initially demanded a fuller explanation before approving the withdrawal.
The original prosecution, announced in November 2024, alleged a scheme involving more than $250 million in promised bribes to Indian officials to secure solar electricity contracts. Prosecutors said those contracts were expected to generate more than $2 billion in profits over approximately 20 years. These were allegations, which the Justice Department acknowledged would have to be proved in court.
The charges against Gautam Adani, his nephew Sagar Adani and executive Vneet Jaain concerned securities fraud and conspiracy to commit securities and wire fraud. Prosecutors alleged that they concealed the bribery scheme while raising money through international loans and bond offerings marketed to investors in the United States. Other defendants faced separate foreign bribery and obstruction allegations, making it important to distinguish the accusations against each individual.
The US connection therefore centred on fundraising and representations to investors, despite the alleged procurement conduct taking place in India. According to the indictment announcement, the financing included more than $2 billion in syndicated loans and bond offerings exceeding $1 billion. The prosecution’s position was that investors and lenders had received misleading assurances about the company’s conduct.
A parallel Securities and Exchange Commission action focused more specifically on investor disclosures. Its November 2024 complaint alleged that Gautam and Sagar Adani participated in a bribery scheme while Adani Green Energy raised $750 million through a September 2021 note offering, including approximately $175 million from US investors. The regulator alleged that statements about the company’s anti-corruption practices were materially misleading.
Those proceedings followed a separate civil enforcement route. The SEC originally sought financial penalties, injunctions and restrictions on the two men serving as company officers or directors. The distinction matters because the criminal prosecution and the regulator’s action involved different proceedings and remedies, even though they arose from related allegations.
According to the BBC, Gautam and Sagar Adani subsequently agreed to settlements of $6 million and $12 million respectively, without admitting or denying wrongdoing. Adani has consistently denied the underlying accusations and welcomed the criminal dismissal, reaffirming his confidence in the judicial process.
Garaufis also examined whether Adani’s proposed $10 billion US investment influenced the withdrawal, ultimately concluding that it had not. The outcome closes the criminal case without a trial determining the allegations, while leaving the judge’s criticism of the decision-making process on record. TownPress could not independently access the dismissal order; its account of the ruling relies on the BBC’s reporting.
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