The New York court permanently dismissed the criminal case against Adani Group chairman Gautam Adani and his relative Sagar Adani. Earlier, the U.S. government had agreed to close the case against Gautam Adani.
With this, the case that had been pending for about two years against Gautam Adani, Sagar Adani, and former chief executive officer (CEO) of Adani Green, Vineet Jain, was permanently dismissed.
Background of the case: In 2024, the U.S. Department of Justice alleged that businessman Gautam Adani paid $265 million in bribes (about Rs. 2,450 crore) to Indian officials to secure solar power contracts. In this regard, the Department of Justice filed an indictment in the Eastern District Court of New York.
That indictment alleged, ‘The Adani Group raised several thousand crore rupees from U.S. banks and investors for projects to supply solar power. Those banks and investors were defrauded, and the fact that bribes were paid to government officials was concealed.’
Similarly, amid allegations that Gautam Adani and his relative Sagar Adani were involved in stock fraud and wire fraud, among other offenses, the U.S. Securities and Exchange Commission (SEC) accused them of violating U.S. securities investor protection laws.
In this regard, the SEC filed a case in the New York District Court. Gautam Adani and Sagar Adani denied these allegations.
Following this, Adani filed a petition in a U.S. court seeking dismissal of the fraud case against him.
Biden administration’s political move: Judge Nicholas Garaufis heard the case on Monday. At that time, he asked the U.S. Department of Justice to explain the reasons for agreeing to close the case.
The U.S. Department of Justice said: Continuing the investigation into this case would not be appropriate for the administration of justice. The allegations are largely related to India in terms of jurisdiction and evidence. Indian authorities have already conducted an extensive review of this matter. There does not appear to have been any loss to investors, as alleged in the complaint.
Furthermore, in the final days of former President Joe Biden’s administration (November 2024), a case was filed against Gautam Adani in haste for political reasons. This case was fabricated with the intent of publicly naming and humiliating an individual. Therefore, it was stated that it would be appropriate to close this matter.
Ruling deferred in 2 cases: Following the argument by the U.S. Department of Justice, Judge Karafis permanently dismissed three cases related to stock market fraud and wire fraud. As a result, these cases cannot be refiled. At the same time, he deferred judgment in two cases involving violations of the Foreign Corrupt Practices Act and obstruction of justice.
Since Ranjit Gupta, Cyril Cabanes, Saurabh Agarwal, Deepak Malhotra and Rupesh Agarwal, who are associated with this case, did not appear, the verdict was postponed. Time has been granted until August 31 for the U.S. Department of Justice and the concerned individuals to submit reasons for dropping the above five people from the two cases.
Truth has prevailed: Gautam Adani
In a statement released on Tuesday welcoming the dismissal of the case against him, Gautam Adani said, ‘I accept the U.S. court’s decision with humility and respect. Throughout this challenging period, we continued to hold unwavering faith in truth, justice, and the rule of law.
Likewise, thanks to those who never lost faith in us, in this institution, and in India’s ability to deliver justice.
We will continue to build our nation, create value that endures beyond us, and work for a purpose greater than ourselves. Jai Hind,’ he said.
