US Judge Dismisses criminal charges against Gautam Adani and Sagar Adani

A US federal court has permanently dismissed the criminal case against Adani Group Chairman Gautam Adani, his nephew Sagar Adani, and former Adani Green CEO Vneet Jaain, closing nearly two years of legal proceedings tied to fraud and bribery allegations.

The US District Court for the Eastern District of New York accepted the Justice Department's motion to drop the indictment, which had included charges of securities-fraud conspiracy, wire-fraud conspiracy and securities fraud. Judge Nicholas Garaufis granted the dismissal "with prejudice" — meaning the same charges can never be refiled — after first pressing prosecutors to explain their reasoning.

Importantly, the court's order does not amount to a ruling on the underlying allegations. No trial took place, no witnesses were called, and no evidence was formally tested.

Background to the Case

The case dated back to November 2024, when US prosecutors accused Adani, his nephew and others of conspiring to pay roughly $250 million in bribes to Indian officials to secure solar power contracts expected to yield over $2 billion in profits over 20 years. Prosecutors had also alleged that investors were misled while the group raised more than $3 billion from US capital markets.

The Adani Group has consistently denied the charges, calling them baseless. A related civil case brought by the US Securities and Exchange Commission was also resolved, with Gautam Adani agreeing to pay a $6 million penalty without admitting wrongdoing.

Why the DoJ Sought Dismissal

According to court filings, the Trump administration's Justice Department argued that continuing the prosecution no longer served the interests of justice. Its reasoning cited jurisdictional and evidentiary weaknesses, the fact that the alleged conduct was largely rooted in India, the absence of identified investor losses, and India's own regulatory scrutiny of the matter. The DoJ went further, suggesting the original indictment—unveiled in the final weeks of the Biden administration—had limited prospects of reaching trial and resembled a politically driven exercise.

The court, however, did not accept every argument the government offered. Judge Garaufis found that claims about jurisdiction were weak, noting the indictment itself alleged that US investors and the American financial system were directly involved. Ultimately, the dismissal rested primarily on the argument that certain corporate statements about anti-bribery compliance amounted to legally non-actionable "puffery."

The judge also directly addressed concerns about Adani's pledge, made in November 2024, to invest $10 billion in the United States. He stated he was satisfied that this commitment played no role in the Justice Department's decision, and required Adani and the other defendants to file sworn declarations confirming there had been no quid pro quo involved.

Adani's Response

Reacting to the verdict, Gautam Adani said the group had approached the outcome with humility. In a post on X, he thanked supporters for their faith in "truth, fairness and the rule of law" and reaffirmed the group's commitment to nation-building.

A Look Back

The case unfolded against the backdrop of intense scrutiny that began with a January 2023 report by short-seller Hindenburg Research, which triggered a sharp selloff that briefly wiped out more than $150 billion in the conglomerate's market value. The group has always rejected those allegations as well.

Business Continued Uninterrupted, Group Says

According to a summary released by the Adani Group, business operations were not affected by the legal proceedings at any point. The company says it invested more than ₹2.08 lakh crore during the second half of FY25 and FY26, with annual capital expenditure hitting a record ₹1,52,967 crore in FY26 — the highest of any Indian corporate group.

Group projects that came onstream during this period included the launch of operations at Navi Mumbai International Airport, a new terminal at Guwahati Airport, the Colombo West International Terminal, and the Ganga Expressway. Adani Ports also became the first Indian port operator to cross 500 million tonnes of cargo handled in a single financial year, while Adani Green Energy's renewable capacity crossed 20 GW.

The group also points to an expanding asset base — from ₹4.12 lakh crore in FY23 to ₹7.85 lakh crore in FY26 — along with credit rating upgrades and continued participation from global investors including Apollo Global Management, BlackRock and Capital Group, as evidence of sustained market confidence throughout the litigation.

The Bigger Picture

Legal experts note the case offers a reference point for how cross-border corporate prosecutions are handled, reaffirming that indictments represent allegations rather than proven guilt, and that prosecutorial decisions can be revisited as facts and legal assessments evolve.