A US federal judge on Monday formally dismissed criminal charges against Indian billionaire Gautam Adani and his nephew Sagar Adani in a securities fraud case, while criticising the conduct of a senior Justice Department official involved in the decision to drop the prosecution.
Judge Nicholas Garaufis had earlier asked prosecutors to explain why they wanted to abandon the case, saying their initial explanation was "bland and conclusory".
In his ruling, Garaufis described Justice Department official Trent McCotter's conduct as "highly unusual".
He questioned why McCotter had reached the decision largely in collaboration with defence lawyers, apparently without input from FBI and Securities and Exchange Commission agents who investigated the allegations or prosecutors who brought the case.
McCotter had said in a July 4 filing that the case was primarily foreign, difficult to prove and inconsistent with the department's current priorities.
Adani, Sagar Adani and six others were indicted by a federal grand jury in Brooklyn in November 2024. US prosecutors alleged that Adani had agreed to bribe Indian government officials to secure approval for an Adani Group subsidiary to develop a solar energy project. They also alleged that the defendants made misleading statements about anti-corruption practices while raising funds from US and international investors.
Adani denied wrongdoing. He welcomed Monday's decision, saying he respected the judicial process and would continue focusing on building businesses and creating value in India.
The case had complicated Adani's investment plans in the US and raised concerns about his ability to travel internationally. In November, he had announced plans to invest $10 billion in US energy projects and create up to 15,000 jobs.
The judge dismissed the charges against Gautam and Sagar Adani but has not yet ruled on foreign bribery and obstruction charges against five other co-defendants. Garaufis said prosecutors had not adequately justified dropping those charges.