U.S. DOJ drops charges against Gautam Adani

The U.S. Justice Department moved on May 18 to dismiss with prejudice the criminal indictment against Indian billionaire Gautam Adani, his nephew Sagar Adani and other defendants in federal court in Brooklyn. A DOJ letter to Judge Nicholas Garaufis said the department had reviewed the case and decided, in its prosecutorial discretion, not to devote further resources to the charges. Adani Green Energy told Indian stock exchanges the motion sought a complete dismissal that would bar any prosecution on the same allegations, while adding that the court’s order was still awaited. The filing ends, for now, one of the highest-profile U.S. cases against an Indian business group. ### What exactly did the Justice Department file? A May 18 letter filed in the U.S. District Court for the Eastern District of New York asked the court to dismiss the indictment under Rule 48(a) of the Federal Rules of Criminal Procedure. The DOJ said the dismissal should be with prejudice, meaning the same criminal allegations could not be brought again. The letter cited prosecutorial discretion and referenced Second Circuit precedent saying courts rarely overrule such executive-branch decisions. (images.assettype.com) Adani Green Energy said in its May 18 exchange filing that the indictment in case No. 24-CR-433 had named Gautam S. Adani, Sagar R. Adani, Vneet S. Jaain and other individuals. The company said it was not itself a party to the criminal proceeding, though it noted that three of its directors had been charged with alleged securities fraud conspiracy, alleged wire fraud conspiracy and alleged securities fraud. (images.assettype.com) ### What had U.S. prosecutors accused Adani and his nephew of doing? The SEC said in a litigation release dated May 14 that its 2024 complaint accused Gautam Adani and Sagar Adani of making false and misleading statements tied to a 2021 bond offering by Adani Green Energy Ltd. The agency said the complaint alleged the two men were involved in a scheme to pay or promise hundreds of millions of dollars in bribes to Indian government officials in exchange for commitments to buy energy at above-market rates. (bseindia.com) Politico, citing the criminal case, reported that prosecutors had alleged in late 2024 that Adani and other defendants paid more than $250 million in bribes to Indian officials to secure solar-energy supply contracts expected to generate billions of dollars in profit, then concealed that scheme while raising money in the United States. (sec.gov) ### Did the SEC case also end? The SEC said on May 14 that it moved for entry of final judgments by consent against Gautam Adani and Sagar Adani in the civil case. The agency said that, without admitting or denying the allegations, Gautam Adani consented to a proposed $6 million civil penalty and Sagar Adani consented to a proposed $12 million penalty, both subject to court approval. (politico.com) CNBC reported on May 19 that the SEC move had been seen as a precursor to the DOJ action. The same report said the Adani group was also dealing with a separate U.S. Treasury matter involving Adani Enterprises. ### Where do the $10 billion and 15,000 jobs figures come from? Reuters reported on May 14, citing two sources familiar with the matter, that Adani had promised to invest $10 billion in the U.S. economy. (sec.gov) CNBC said on May 19 that, according to a New York Times report, Adani’s legal team had proposed that he was willing to invest $10 billion in the American economy and create 15,000 jobs if the criminal case was resolved. (cnbc.com) Those figures were also repeated in other follow-up coverage, but the DOJ dismissal letter itself did not mention any investment pledge or jobs commitment. The court filing gave one reason for the request: the department had decided not to devote further resources to the criminal charges. ### Is the case fully over? Judge Nicholas Garaufis still has to act on the DOJ motion. (usnews.com) A draft order surfaced in public reporting on May 19 showing language that would dismiss the indictment with prejudice, but the operative court step remains the judge’s order. The SEC matter also remains subject to court approval. The next formal milestones are the judge’s ruling in the criminal case in Brooklyn and entry, if approved, of the SEC’s proposed final judgments against Gautam Adani and Sagar Adani. (images.assettype.com 1) (images.assettype.com 2)