3 weeks ago
US Court Dismisses Criminal Case Against Gautam Adani, Nephew
Some very important business leaders in India were accused of breaking the law.
American officials said the leaders may have paid big bribes, around $250 million, to win contracts for building solar power plants in India.
A court in New York was going to decide whether the leaders did anything wrong.
But the American government's own lawyers decided they no longer wanted to continue the case.
The judge agreed and closed the case forever, which means the same charges can never be brought again.
Closing a case forever does not mean the leaders were proven innocent.
The judge asked everyone to explain why the case was ending, and the leaders promised in writing that there was no secret deal behind it.
One leader, Gautam Adani, said he was thankful and that he still believes in fairness and the rule of law.
The leaders still had to pay a $6 million fine to settle a separate civil case in America.
People who own shares in the leaders' companies were happy, and the share prices went up a little.
The US District Court for the Eastern District of New York dismissed with prejudice the criminal indictment against Gautam Adani, Sagar R. Adani and Vneet S. Jaain on August 10, 2026.
The charges — securities fraud conspiracy, wire fraud conspiracy and securities fraud — stemmed from allegations of around $250 million in bribes to Indian officials for solar power contracts projected to yield more than $2 billion in after-tax profits.
Judge Nicholas Garaufis granted the US Department of Justice's Rule 48(a) dismissal motion, accepting the 'inactionable puffery' argument while rejecting or finding insufficient several other reasons advanced by the government.
A separate US Securities and Exchange Commission civil action was resolved with a $6 million civil penalty for Gautam Adani, who consented without admitting the allegations.
Following the dismissal, Adani Group shares traded higher on Tuesday, with Adani Energy Solutions rising as much as 0.55% and other stocks climbing up to 0.42%.
- Who
- Gautam Adani, chairman of the Adani Group, his nephew Sagar R. Adani, and former Adani Green Energy CEO Vneet S. Jaain
- What
- A US federal court dismissed with prejudice their criminal indictment for securities fraud conspiracy, wire fraud conspiracy and securities fraud, permanently ending nearly two years of proceedings without a judicial finding on the merits
- Where
- US District Court for the Eastern District of New York
- When
- The dismissal order was dated August 10, 2026; the criminal case began in November 2024
- Why
- The US Department of Justice decided in its prosecutorial discretion that continuing the prosecution no longer served the interests of justice, citing jurisdictional and evidentiary challenges, the predominantly Indian nature of the alleged conduct, the absence of identified investor losses and broader public-interest considerations
Proponents of dismissal
Supporters of the prosecution
Political motivation of the charges
Proponents of dismissal
The Justice Department said the indictment, unsealed in November 2024 during the closing weeks of the previous administration, had little realistic prospect of proceeding to trial and appeared to be a politically motivated 'name and shame' exercise orchestrated by the outgoing administration.
Supporters of the prosecution
The original prosecutors alleged a concrete scheme involving around $250 million in bribes to Indian officials and more than $3 billion raised through loans and bond issuances in US markets, and the dismissal makes no judicial determination on the merits of those allegations.
US jurisdiction over the alleged conduct
Proponents of dismissal
The government argued the alleged misconduct occurred almost entirely in India, creating significant US securities-law jurisdictional risks, and that Indian authorities had already examined the matter.
Supporters of the prosecution
The court noted the indictment itself alleged investors committed funds in the United States and that the transactions involved the US financial system, and it rejected the jurisdictional argument as an insufficient reason for dismissal.
Legal grounds for dismissal
Proponents of dismissal
The court found the government had met the legal requirements for dismissal because alleged statements about Adani Green's anti-bribery policies and corporate compliance could amount to 'inactionable puffery' that investors could not reasonably rely on.
Supporters of the prosecution
The judge rejected or found insufficient several other reasons the government advanced, required prosecutors to publicly explain their decision and demanded defendants file sworn declarations, so the dismissal was not a vindication of the defendants' conduct.
Key facts
- Accused individuals
- Gautam S. Adani, Sagar R. Adani, Vneet S. Jaain
- Court
- US District Court for the Eastern District of New York
- Presiding judge
- Nicholas Garaufis
- Order date
- August 10, 2026
- Charges dismissed
- Securities fraud conspiracy, wire fraud conspiracy, securities fraud
- Outcome
- Dismissed with prejudice; no judicial finding on the merits
- Alleged bribery scheme
- Around $250 million in bribes to Indian officials for solar contracts projected to generate more than $2 billion in after-tax profits
- SEC civil settlement
- $6 million civil penalty within 30 days, without admitting the allegations
Quotes
Gautam Adani
Chairman of the Adani Group
“"Throughout this challenging period, our faith in truth, fairness and the rule of law remained unwavering. My deepest gratitude to those who never lost faith in us, in the system and in India's capacity for justice. We will continue doing what matters: building for our nation, creating value that outlasts us and serving a purpose larger than ourselves. That is our commitment."”
telegraphindia.com
livemint.com
“"I welcome the US court’s decision with humility and deep respect for the judicial process. Throughout this challenging period, our faith in truth, fairness and the rule of law remained unwavering. My deepest gratitude to those who never lost faith in us, in the system and in India’s capacity for justice."”
indianexpress.com
businesstoday.in
livemint.com
Sources
US court dismisses criminal charges against Adanis
Relief to Adani: US court permanently dismisses criminal case against him
Gautam Adani, Sagar Adani get relief as US court dismisses criminal case
US Court Dismisses Criminal Case Against Gautam Adani, Sagar Adani
Adani Green, Adani Power, Adani Enterprises shares in focus as US court drops criminal charges against Gautam Adani
Adani Energy to Adani Ports: Adani Group shares rise as the US Court dismisses criminal case against Gautam Adani
Related news
US judge dismisses fraud, bribery charges against Gautam Adani
Gautam Adani Welcomes US Court Decision To Dismiss Criminal Charges
Adani Stocks Rise After US Court Dismisses Fraud Charges
Gautam Adani Thanks Supporters After US Court Dismisses Charges
US Judge Dismisses Fraud Charges Against Adani Group Chairman
Rahul Gandhi: 'Compromised PM' forced to sell India's interest
Mundra Port disruption deepens supply-chain strain amid West Asia crisis
Adani Stocks Mixed After Heavy Sell-Off Amid MSCI Reshuffle
Indian Stocks Slide as Crude Surge Revives Rate Fears
Indian stocks retreat as US-Iran tensions lift oil, yields
MSCI Rebalancing Sends Adani Stocks Into Closing-Auction Volatility
