On Monday, a US court ended the long legal saga surrounding Gautam and Sagar Adani by dismissing all criminal charges against the two men and their associate Vneet Jaain at the request of the US government. Separately, the court also finalised a settlement between the Adanis and the US Securities and Exchange Commission which will see the former pay the US government $18 million without admitting guilt and formally settle the civil securities fraud charges against them.
Judge Nicholas Garaufis of the United States District Court for the Eastern District of New York dismissed criminal charges against the Adanis related to securities and wire fraud with prejudice – meaning that prosecution in the cases cannot be opened again – even as his judgement expressed concern at “irregularities” in the Trump Justice Department’s decision to cease pursuing charges against the Adanis.
Key Factors
The decision comes almost two years after the US Justice Department unsealed an indictment in November 2024 alleging that the Adani group and its associates had been involved in a $265 million bribery scheme to win lucrative solar energy contracts with Indian government entities. The district court also finalised a settlement between the Adanis and the US Securities and Exchange Commission, which will see the Adanis pay the US government $18 million without admitting guilt and formally settle the civil securities fraud charges against them. In 2024, the US Justice Department unsealed an indictment against the Adani group and its associates, alleging that the group had been involved in a $265 million bribery scheme to win solar energy contracts with Indian government entities. A U.S. judge threw out a case against Indian billionaire industrialist Gautam Adani on Monday (August 10, 2026) after the Trump administration decided to drop the fraud and bribery allegations against him.
The judge in the case had previously asked if the reported investment pledge was a factor in the U.S. government’s decision to drop the case, a rare move in the federal legal system, but ultimately concluded it was not part of prosecutorial decision-making. In addition, the Adanis were accused of participating in an effort to defraud US and international investors by lying about the group’s anti-corruption activities. Associates of the Adanis were also charged with attempting to obstruct the investigations of US government entities by destroying evidence in the case. Separately, the US Securities and Exchange Commission also filed civil charges against Gautam and Sagar Adani related to the same case. However, Garaufis’ judgement took issue with the US government’s move to dismiss all charges against all defendants in the case. Noting his list of concerns about the US government’s handling of the case, Garaufis singled out McCotter for criticism. “As noted throughout this opinion, the irregularities in the decision to dismiss the Indictment are concerning. On the current record, McCotter appears to have eschewed the professional opinions of innumerable officials from various federal offices and replaced them with his singular judgment. The fact that McCotter came to this decision largely in collaboration with defense counsel, and seemingly without input from the FBI and SEC agents who investigated the alleged misconduct, or the attorneys from the Department, SEC, and US Attorney’s Office who brought the case, appears to be highly unusual,” reads the judgement. It also points out that McCotter was the sole decision maker in the move to dismiss charges and notes McCotter’s admission that current or former US government attorneys may disagree with the decision to drop charges. Furthermore, the Adanis were also accused of participating in an effort to defraud American and international investors by lying about the company’s anti-corruption activities. Mr. Adani is a close ally of Indian Prime Minister Narendra Modi and hails from the leader’s home state of Gujarat.
Garaufis noted that the court was satisfied, upon information being provided by the Justice Department, that the Adanis’ offer to invest $10 billion in the US was a “non-consideration” in the Department’s decision to stop pursuing charges. This tussle culminated in Garaufis’ order dismissing the criminal charges against Gautam and Sagar Adani on Monday.
