A US judge on Monday dismissed criminal charges against Indian billionaire Gautam Adani, but raised concerns over how prosecutors handled the case.
Brooklyn-based US District Judge Nicholas Garaufis approved federal prosecutors’ rare request to dismiss the fraud and bribery charges.
However, the judge first questioned the Justice Department about its reasons for abandoning the high-profile prosecution.
Garaufis also examined whether Adani’s November 2024 pledge to invest $10 billion in the United States influenced the decision.
The judge ultimately said he was satisfied that the investment pledge did not influence prosecutors’ decision to drop the charges.
However, he criticised Principal Associate Deputy Attorney General Trent McCotter for working with Adani’s defence lawyers during the dismissal process.
According to Garaufis, McCotter made the decision without input from prosecutors or agents who had investigated the case.
“The irregularities in the decision to dismiss the indictment are concerning,” Garaufis wrote.
“McCotter appears to have eschewed the professional opinions of innumerable officials from various federal offices and replaced them with his singular judgment.”
Justice Department Defends Decision
A Justice Department spokesperson referred to a July 4 filing submitted by McCotter regarding the decision.
In that filing, McCotter said he decided to abandon the charges after meeting Adani’s defence lawyers and other Justice Department lawyers.
He also said he conducted his own research and analysis before reaching the decision.
The judge, meanwhile, stressed that dismissing the case did not mean he agreed with the Justice Department’s decision.
Garaufis also clarified that his ruling did not represent an opinion on the merits of the underlying charges.
He asked the Justice Department to provide additional information before deciding whether charges against other defendants should also be dismissed.
What Were the Original Charges Against Adani?
US prosecutors charged Adani in 2024 over allegations involving bribery and misleading US investors.
Prosecutors alleged that Adani agreed to bribe Indian government officials to help an Adani Group subsidiary secure approval for a solar energy project.
They also accused him of misleading US investors through reassuring information about the group’s anti-corruption practices.
Adani Group has consistently denied wrongdoing.
Adani himself has not appeared before a US court to respond to the charges.
McCotter said in the July 4 filing that the case was primarily foreign and difficult to prove.
He also described the prosecution as inconsistent with the Justice Department’s current priorities.
Adani Responds to Court Decision
Following the dismissal, Gautam Adani welcomed the court’s decision and expressed respect for the judicial process.
In a statement posted on X, Adani said, “I welcome the US Court’s decision with humility and deep respect for the judicial process.”
The case also involved questions surrounding Adani’s earlier pledge to invest $10 billion in the United States.
In a sworn declaration filed on July 15, Adani acknowledged making the investment pledge previously.
He said his lawyers told the Justice Department that the pledge “might be part of a resolution of these matters.”
Robert Giuffra, Adani’s lawyer, also addressed the issue in a July 15 court declaration.
He said the defendants had told the Justice Department that the Adani Group was “amenable” to fulfilling the investment pledge as part of a resolution.
However, Garaufis said he took “no position on the ultimate propriety of Mr Giuffra’s repeat attempts to resolve this bribery case with monetary offers.”
Other US Legal Resolutions
The developments came alongside separate resolutions involving US authorities.
In a civil case brought by the US Securities and Exchange Commission, Gautam Adani agreed to pay $6 million.
His nephew, Sagar Adani, separately agreed to pay $12 million under that resolution.
Meanwhile, Adani Enterprises Limited agreed to pay $275 million to the US Treasury Department.
That payment related to an agreement resolving alleged violations of Iran sanctions.
Judge Leaves Public to Assess Broader Questions
Although Garaufis dismissed the criminal charges, his ruling highlighted concerns about the process behind the decision.
The judge questioned the unusual circumstances surrounding the Justice Department’s move and the involvement of senior officials.
He also addressed questions about offers connected with Adani’s US investment pledge.
“It is up to the public to decide what effect offers of this kind have on the equal administration of justice and the rule of law,” the judge wrote.
The ruling therefore ends the criminal case against Adani for now, while leaving broader questions about the dismissal process and its implications for public confidence.
