The United States District Court for the Eastern District of New York has dismissed all criminal charges pending against Gautam S. Adani, Sagar R. Adani and Vneet S. Jaain, bringing the criminal proceedings against them to an end. However, the Court reserved its decision on the US Department of Justice’s request to dismiss the remaining counts against certain other accused, observing that further justification was required under Rule 48(a) of the Federal Rules of Criminal Procedure.
The Court dismissed Counts Two, Three and Four relating to securities fraud conspiracy, wire fraud conspiracy and securities fraud—with prejudice against Gautam Adani, Sagar Adani and Vneet Jaain, meaning the charges cannot be revived. Since these were the only counts pending against the three executives, the criminal prosecution against them stands concluded.
The indictment, returned in October 2024, had alleged that senior executives associated with the Adani Group and others orchestrated a scheme involving approximately USD 265 million in bribes to Indian government officials to secure solar energy contracts, while misleading investors to raise billions of dollars through securities offerings.
The Court noted that following changes to the US administration’s Foreign Corrupt Practices Act (FCPA) enforcement policy, the Department of Justice reviewed the prosecution and moved to dismiss the indictment under Rule 48(a), stating that it had decided not to devote further prosecutorial resources to the case.
While allowing the dismissal of the charges against Gautam Adani and the other appearing defendants, Judge Nicholas G. Garaufis expressed concern over the manner in which the Department sought to terminate the prosecution, describing aspects of the process as highly unusual. The Court observed that the Rule 48(a) motion contained little explanation beyond a reference to prosecutorial discretion and that no prosecutor involved in bringing the indictment had signed the motion.
The Court nevertheless reserved its decision on the Department’s request to dismiss the remaining counts against other accused persons, directing the Department to provide further justification before those charges could also be withdrawn.