A US federal court has dismissed the criminal case against billionaire Gautam Adani, bringing an end to a legal battle that began in 2024. However, the ruling was accompanied by pointed questions from the judge over the Justice Department’s decision to abandon the prosecution.
Brooklyn-based US District Judge Nicholas Garaufis agreed to the Justice Department’s request to dismiss the fraud and bribery charges against Adani. Before approving the move, however, the judge questioned prosecutors extensively about their reasoning and examined whether Adani’s previously announced plan to invest $10 billion in the United States had any bearing on the decision.
The Justice Department has denied that the investment proposal influenced its decision to drop the charges.
The decision is part of a series of high-profile white-collar cases that the US Justice Department has moved to abandon during President Donald Trump’s second term.
Justice Department official Trent McCotter said he decided to seek dismissal after meeting Adani’s legal representatives and other officials and conducting his own review of the case.
In a court filing dated July 4, McCotter described the prosecution as largely foreign in nature, difficult to establish in court and inconsistent with the department’s current enforcement priorities.
He also rejected the suggestion that Adani’s proposed US investment had played a role in the decision.
Adani responded to the court’s decision on X, saying he accepted the outcome while expressing confidence in the legal process.
"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…"
Although Judge Garaufis agreed to dismiss the case, his ruling did not amount to an endorsement of the Justice Department’s reasoning.
The judge said he accepted the department’s position that Adani’s investment plans had not influenced the decision. He also acknowledged that federal courts have limited authority to interfere with prosecutorial decisions.
At the same time, Garaufis criticised the manner in which McCotter handled the review. According to the judge, McCotter worked directly with Adani’s defence lawyers while excluding prosecutors and investigators who had originally developed the case.
"The irregularities in the decision to dismiss the indictment are concerning."
Garaufis stressed that dismissing the case should not be interpreted as a finding that the original charges lacked merit. He has also sought additional information from the Justice Department before determining how the dismissal could affect other defendants named in the case.
US prosecutors charged Adani in 2024, alleging that he and others were involved in a scheme to pay bribes to Indian officials to secure approvals for a solar energy project.
Prosecutors also alleged that investors in the United States were misled about the company's anti-corruption practices.
The Adani Group has consistently denied wrongdoing, while Adani himself has not appeared before a US court in connection with the criminal charges.
Separately, Adani agreed to pay $6 million, while his nephew Sagar Adani agreed to pay $12 million to settle related civil claims brought by the US Securities and Exchange Commission.
Adani Enterprises also agreed to pay $275 million to the US Treasury to resolve claims connected to Iran sanctions.
The role of Adani’s proposed US investment remained a key question during the proceedings.
In a sworn statement filed on July 15, Adani confirmed that he had previously pledged to invest $10 billion in the United States.
According to court filings, his lawyers informed the Justice Department that the investment could potentially form part of a resolution to the case. Adani’s lawyer, Robert Giuffra, separately said the defence had indicated that the Adani Group remained willing to proceed with the investment as part of a settlement.
Judge Garaufis ultimately accepted the Justice Department’s position that the investment pledge did not influence its decision to seek dismissal.
However, he stopped short of endorsing the broader circumstances surrounding the offers, writing that it was "up to the public to decide" what effect such proposals might have on the fair application of the law.
The dismissal closes the criminal prosecution against Adani for now, but the judge’s criticism ensures that questions surrounding the Justice Department’s handling of the case are unlikely to disappear immediately.
