US Court seeks explanation from prosecutors over dropping Adani charges

A US federal judge has asked the Department of Justice (DOJ) to provide further justification for its decision to seek dismissal of fraud charges against Adani Group chairman Gautam Adani, according to Reuters.

Judge Nicholas Garaufis of the US District Court for the Eastern District of New York did not immediately approve a request from Adani’s legal team to dismiss the case. Instead, he gave prosecutors until July 13 to submit additional details explaining why the government wanted to abandon the charges, Scroll.in reported.

The judge said that the DOJ’s brief explanation was insufficient for the court to properly assess the request or conduct a meaningful review of the decision, according to Reuters.

US authorities had indicted Gautam Adani and his nephew Sagar Adani in November 2024, alleging that they were involved in a $265 million bribery-related fraud scheme connected to solar energy contracts in India. Prosecutors had accused them of concealing alleged payments to Indian officials and misleading US investors about the company’s anti-corruption practices.

The Adani Group has rejected the allegations, stating in a stock exchange filing that the charges in the US related to securities fraud claims rather than bribery accusations.

In May, the administration of US President Donald Trump asked the court to dismiss the criminal charges against Gautam Adani. The Justice Department said the decision was based on prosecutorial discretion and that it no longer intended to use resources to pursue the criminal case against the individuals involved.

However, the dismissal requires approval from Judge Garaufis.

The request came shortly after reports suggested that Adani’s legal representatives had proposed significant investment commitments in the US, including a $10 billion investment and the creation of 15,000 jobs, if the charges were dropped. Two Democratic senators later criticised the proposal, describing it as resembling an improper exchange.

Earlier reports by The New York Times said the Justice Department was considering dropping the case after Adani hired a legal team headed by Robert J Giuffra Jr., a lawyer who has represented President Donald Trump. According to the report, Giuffra met Justice Department officials in April and presented arguments claiming that prosecutors lacked sufficient evidence and legal authority to pursue the case. The presentation included a proposal involving future US investments by Adani.

Even if the criminal case is dismissed, Adani could still face financial penalties, according to reports. His lawyers also sought to resolve a related civil case brought by the US Securities and Exchange Commission (SEC).

The SEC reached a settlement with Gautam Adani and Sagar Adani in May, under which Gautam Adani agreed to pay $6 million and Sagar Adani agreed to pay $12 million. Adani Green Energy clarified that it was not a party to the proceedings and that no charges had been filed against the company. It said the payments were made without admitting or denying the allegations.

The final decision from the US District Court in New York is still pending.