Gautam Adani wins dismissal of US securities fraud charges
It marks the end of Adani’s US legal troubles
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GAUTAM Adani won dismissal of US securities fraud charges, ending a blockbuster case that threatened the expansion of the Indian billionaire’s giant conglomerate.
US District Judge Nicholas Garaufis in Brooklyn, New York, on Monday (Aug 10) dismissed conspiracy, securities and wire fraud charges against Adani and his nephew Sagar Adani. The case was brought in an indictment in the waning days of President Joe Biden’s administration in late 2024.
The US alleged Adani was part of a scheme to pay more than US$250 million in bribes to Indian government officials to lock in solar energy contracts — allegations Adani has consistently denied. Garaufis said the charges against the Adanis would be dismissed “with prejudice,” meaning the government cannot revive the case.
The ruling marks the end of Adani’s US legal troubles, which also included settlements with the US Securities and Exchange Commission and the Treasury Department.
The government’s request to drop charges against the Adanis was the culmination of months of behind-the-scenes negotiations and maneuvering by Asia’s richest man and his allies, and could now set the stage the 64-year-old tycoon to expand his businesses in the US.
“I welcome the US court’s decision with humility and deep respect for the judicial process,” Adani said in a post on X. A spokesman for the US Attorney in Brooklyn did not have an immediate comment.
In addition to the government’s request to drop the fraud case against Adani, Adani Group’s flagship Adani Enterprises agreed to pay US$275 million to settle a probe by the Treasury Department’s Office of Foreign Assets Control related to Iran sanctions violations.
In his ruling on Monday, Garaufis said he would not immediately dismiss violations of US anti-bribery laws and obstruction of justice against five other co-defendants in the case. The judge said the government needs to further explain why it wants to drop those charges.
Behind scenes
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After the US asked to dismiss the case, Garaufis in June said the government had “failed” to justify its request and directed prosecutors to explain their decision in writing.
Adani had to provide more details as well, and said that his pledge to invest in the US didn’t play a role in the request to drop the charges. Garaufis agreed with that assertion on Monday.
Federal prosecutors generally have wide discretion to drop criminal cases, and judges have little power to stop them.
In Monday’s order, Garaufis took aim at R. Trent McCotter, principal associate deputy attorney general. In a Jul 4 memo to the court, McCotter criticised the initial indictment, arguing the case had “extraordinary proof problems.”
The judge faulted McCotter’s assertion that “not a single penny has ever been lost” on the securities at issue in the case. Garaufis also said that McCotter had not provided “a scintilla of evidence” to support the argument that the outgoing Biden administration dumped the case on President Donald Trump’s administration.
“McCotter’s baseless assertion is unbecoming of his office,” the judge wrote.
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