A US federal judge in New York dismissed on Monday a nearly two-year-old criminal case alleging bribery and fraud against Indian billionaire Gautam Adani and seven others.Since the charges were brought in Nov 2024, the Adani Group has denied the allegations, calling them baseless and maintaining that the companies and individuals had acted in accordance with applicable laws and regulatory requirements.The US department of justice (DoJ) gave six “overlapping bases” seeking dismissal of the case — including this was a foreign case; India did not find any “actionable misconduct”; “not a single penny was lost” on securities issued; and that there were “extraordinary proof problems”.
The DoJ had started investigating Adani in November 2024
In addition, the department submitted that when the indictment was unsealed in Nov 2024 in the final days of the Biden administration, it was done “apparently as a ‘name and shame’ designed to levy accusations without any realistic prospect of a trial ever occurring.US DoJ gives six ‘overlapping bases’ for dismissal of caseFinally, it said the defendants — all foreign nationals — have “never appeared and probably never would”.A few months ago, DOJ had moved court to dismiss the case. In his order, US district judge Nicholas Garaufis said DOJ’s decision to make an about-turn on the fraud and bribery case against those eight people was concerning.On Monday, the judge sought to know the reasons for dropping the charges, including if the Adani’s group’s Nov 2024 promise to invest $10 billion in the US influenced DOJ’s decision. In Nov 2024, the DOJ had started investigating Adani, his nephew Sagar Adani and six others, alleging that they were planning to bribe Indian govt officials so that an arm of the Adani Group could win a tender for a solar power plant. DOJ also alleged that the group’s officials had misled US investors by assuring them about the company’s anti-corruption policies.Along with the two Adani group members, charges were dropped against former Adani Green CEO Vneet Jaain, Ranjit Gupta, Cyril Cabanes, Saurabh Agarwal, Deepak Malhotra, and Rupesh Agarwal, court papers showed. DOJ had alleged securities-fraud conspiracy, wire fraud conspiracy, and securities fraud against the eight people.“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,” Gautam Adani posted on X.In his tweet, Gautam Adani also said the group would continue doing what mattered: building for the nation, creating value that outlasts individuals and serving a purpose larger than themselves. “That is our commitment,” he said in the post.
- In Tuesday’s weak market, stock prices of the Group’s companies closed mixed.
