Rahul Gandhi attacks PM Modi following dismissal of US fraud case against Adani

Leader of the Opposition Rahul Gandhi has launched a fierce political attack on Prime Minister Narendra Modi, alleging that a "compromised" leader was forced to "sell India's interest" after a US federal judge permanently dismissed criminal charges against Adani Group chairman Gautam Adani and his nephew Sagar Adani.

Writing in a post on social media alongside a media report detailing the US Justice Department's request to drop the prosecution, the Congress party leader asserted that the country was paying a huge price for the decision and declared that there was far more to the development than met the eye. Senior opposition colleagues echoed the criticism, alleging that the government had bartered away national interests, ignored farmers, and sacrificed the country's youth, domestic industries, and businesses to protect a favoured corporate magnate.

The political backlash follows a decision by US District Judge Nicholas Garaufis of the Eastern District of New York, who approved the US Justice Department's application to bring an end to three criminal charges involving securities-fraud conspiracy, wire-fraud conspiracy, and securities fraud against Gautam Adani, Sagar Adani, and former Adani Green Energy chief executive Vneet Jaain. The judge dismissed the charges with prejudice, formally barring them from ever being refiled. However, the court has not yet ruled on two remaining charges alleging violations of the Foreign Corrupt Practices Act and conspiracy to obstruct justice, which involve five India-based co-defendants, with legal representatives requested to confirm client consents by the end of August.

In evaluating the case, Judge Garaufis stressed that the dismissal was an exercise of prosecutorial discretion and did not constitute a judicial ruling on the underlying merits of the allegations. Prosecutors had sought the dismissal following an extensive review, citing jurisdictional and evidentiary challenges, the predominantly Indian nature of the alleged conduct, scrutiny of the matter by Indian authorities, the absence of identified investor losses, and shifting departmental priorities. The Justice Department further noted that the case had little realistic prospect of reaching trial and appeared to have been a politically motivated exercise.

Adani welcomed the ruling, stating that he accepted the decision with humility and deep respect for the judicial process, whilst the Adani Group reiterated that it had consistently acted in accordance with all applicable laws.

The Modi administration and the conglomerate have repeatedly denied long-standing allegations from opposition parties regarding preferential access to government contracts, regulatory clearances, and state-linked financing.