US Court Refuses To Drop Gautam Adani Indictment; Orders DOJ To Explain Dismissal Move

A United States federal court has refused to immediately approve the Department of Justice’s request to drop criminal charges against Indian billionaire Gautam Adani and seven others, demanding that prosecutors fully explain why they want to walk away from the case.

US District Judge Nicholas G. Garaufis of the Eastern District of New York declined to rule on a motion to dismiss the case, calling the government’s reasoning "terse, bland, and conclusory."

The ruling creates a surprise roadblock for the US Department of Justice (DOJ), which moved on May 18 to dismiss the wire and securities fraud case. Prosecutors had previously argued that they should use their own discretion and "not devote further resources to these criminal charges."

"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 wrote in an order released on Friday.

'Sunshine Provision' Mandate

The court noted that under US law (Rule 48(a) of the Federal Rules of Criminal Procedure), a prosecutor’s request to dismiss an indictment requires a judge's approval. Judge Garaufis described this rule as a “sunshine provision,” meaning that the government must bring clear facts into the light rather than expecting the court to act as a rubber stamp.

Because the government did not provide those underlying facts, the judge noted that the court cannot do its job properly. The DOJ has now been ordered to submit a detailed, point-by-point factual explanation by July 13, 2026.

The criminal case, first opened in November 2024, accused the Adani Group chairman, his nephew Sagar Adani, and executive Vneet Jaain of plotting to pay over $250 million in bribes to Indian government officials. The indictment claimed the payouts were meant to win big solar energy contracts while misleading American investors to raise US capital.

The Adani Group has strongly denied all allegations, pointing out that the main charges involve how transactions were framed, rather than direct bribery inside the United States.

The DOJ's push to drop the case came shortly after reports that Adani's legal team, led by top lawyer Robert J. Giuffra Jr., met with justice officials. The defense argued that the transactions happened outside US borders and that the case had fatal legal flaws. The shift also came around the same time the billionaire promised to invest $10 billion into the US economy, creating roughly 15,000 jobs.

Parallel Settlements

While the criminal case faces unexpected friction in the New York federal court, other civil and regulatory cases linked to the group are moving forward separately.

The US Securities and Exchange Commission (SEC) recently reached a civil settlement where Gautam Adani agreed to pay a $6 million penalty, and Sagar Adani agreed to a $12 million penalty, without admitting or denying the claims. Separately, flagship firm Adani Enterprises agreed to a $275 million settlement with the US Treasury Department over regulatory compliance involving energy imports.

Both the civil settlements and the final decision of the federal criminal charges now depend heavily on whether Judge Garaufis accepts the DOJ's upcoming explanation in July.

-With inputs from Reuters 

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