On 27 June 2026, a United States District Court judge ordered the Department of Justice to provide a detailed justification for its decision to drop fraud charges against Adani Group chairperson Gautam Adani. The court did not immediately grant the request for dismissal and set a deadline for prosecutors to submit further information supporting their position.
According to Scroll, Judge Nicholas Garaufis of the Eastern District of New York stated that the government’s initial explanation was insufficient for the court to make a determination or conduct a proper analysis. Prosecutors were given until 13 July 2026 to provide additional details regarding their rationale for seeking dismissal of the charges.
The fraud charges stemmed from a November 2024 indictment, which alleged that Gautam Adani and his nephew Sagar Adani orchestrated a $265 million scheme involving bribes to Indian officials for solar energy contracts and misrepresentation of anti-bribery practices to US investors. The Department of Justice claimed that details of the alleged bribes were concealed to secure financing, while the Adani Group denied all allegations. The conglomerate clarified in a stock exchange filing that the charges related to securities fraud, not bribery as coverage revealed.
On 18 May 2026, the US administration requested the court to dismiss the fraud charges, citing prosecutorial discretion and a decision not to allocate further resources to the case. However, the judge’s approval is required for the charges to be formally dropped as analysis showed.
“The government’s terse, bland and conclusory statement affords the court neither a sufficient basis to reach any conclusion, nor the opportunity to conduct any analysis of the government's request for dismissal,” Judge Garaufis was quoted as saying.
The request to drop the charges followed reports that Gautam Adani’s legal team had communicated to the Department of Justice an intention to invest $10 billion in the US economy and create 15,000 jobs if the charges were dismissed. This reported proposal drew criticism from two Democratic senators, who described it as an “egregious quid pro quo offer” according to reporting.
In parallel, a civil case filed by the US Securities and Exchange Commission (SEC) against Gautam Adani was resolved through a settlement. Gautam Adani agreed to pay $6 million, and Sagar Adani $12 million, as part of the SEC settlement. The company stated that these payments were made without admitting or denying the allegations, and that Adani Green Energy was not a party to the proceedings as details emerged.
“The final judgement of the US Eastern District Court of New York is awaited in the matter,” the company stated in its communication to stock exchanges.
Additionally, Adani Enterprises agreed to pay $275 million to settle potential civil liability for alleged violations of US sanctions on Iran. This settlement was separate from the fraud and securities cases and involved the US Department of Treasury as further information confirmed.
Note: This article is produced using AI-assisted tools and is based on publicly available information. It has been reviewed by The Quint's editorial team before publishing.