US court dismisses charges against Gautam Adani in high-profile case

A US federal court has dismissed criminal charges against Gautam Adani and his nephew Sagar Adani with prejudice. The US Department of Justice requested the dismissal, bringing a complete closure to the high-profile criminal case in the US.

Major Legal Relief for Adani Group

The US federal court's dismissal of criminal charges against Adani Group Chairman Gautam Adani and his nephew Sagar Adani has ended the high-profile case against them, bringing major legal relief to the group. US District Judge Nicholas Garaufis of the Eastern District of New York dismissed the charges after the US Department of Justice asked the court to dismiss them with prejudice. This means the same criminal charges cannot be filed again.

Legal Experts Weigh In

Senior Advocate Mahesh Jethmalani termed the decision "expected" and said the case had lacked a proper basis from the beginning. "My first reaction is that this was an expected decision," Jethmalani said, recalling that he had raised questions over the case when it was filed in 2024. He said the development amounted to a complete closure of the issue in the US and argued that the case appeared to be a "witchhunt" against the Adanis.

Senior Advocate Vikas Singh said, "nothing remains" in the US in relation to the criminal accusations against Adani. According to Singh, the US government exercised its discretion to seek withdrawal of the charges and the court approved the request. He said that once the government had moved for dismissal and the court had accepted it, there appeared to be no basis for the prosecution to continue the matter.

Senior Advocate Vikas Pahwa described the order as "highly significant" for the Adani Group, particularly because the 2024 indictment had generated considerable negative publicity. Pahwa pointed out that the US Department of Justice had itself taken the position that the alleged bribery transaction did not take place in the US. He said the dismissal, after judicial scrutiny and approval, meant that the criminal case against Adani was now "absolutely closed".

Background of the Case and DOJ's Stance

The case began with a November 2024 indictment in which US prosecutors accused Gautam Adani, Sagar Adani and others of allegedly participating in a scheme to allegedly bribe Indian government officials in connection with solar power contracts. The accused denied the allegations.

The US Justice Department's decision to seek dismissal marked a major shift in the prosecution. In May, the DOJ said it had reviewed the case and, exercising its prosecutorial discretion, decided not to devote further resources to the criminal charges. The court initially sought more details from the government before deciding whether to approve the dismissal. Judge Garaufis questioned the DOJ's earlier explanation and directed it to provide additional justification.

Adani's Reaction and Civil Proceedings

Reacting to the development, Gautam Adani, said in social media post, "I welcome the US court's decision with humility and deep respect for the judicial process."

The criminal case dismissal is separate from civil proceedings involving Adani and Sagar Adani before the US Securities and Exchange Commission. The two had earlier agreed to pay civil penalties in that matter without admitting the allegations. (ANI)

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