NEW YORK, United States — A US federal judge has dismissed criminal charges against Indian billionaire Gautam Adani, while sharply criticising the Justice Department’s handling of its decision to abandon the high-profile bribery and fraud case.
Brooklyn-based US District Judge Nicholas Garaufis on Monday granted federal prosecutors’ request to dismiss the charges against Adani, but said there were “concerning” irregularities in the process that led to the decision.
The judge had questioned whether Adani’s pledge to invest $10 billion in the United States had influenced the Justice Department’s decision to drop the prosecution.
Garaufis said he was satisfied that the investment commitment did not play a role in the decision to dismiss the case. However, he criticised Principal Associate Deputy Attorney General Trent McCotter for consulting Adani’s defence lawyers and conducting his own review without seeking the views of prosecutors and federal agents who had investigated the case.
“The irregularities in the decision to dismiss the indictment are concerning,” Garaufis wrote, saying McCotter appeared to have disregarded the professional assessments of officials from several federal agencies in favour of his own judgment.
The ruling marks the latest high-profile white-collar prosecution abandoned by federal prosecutors during President Donald Trump’s second administration.
Adani welcomed the court’s decision, saying he accepted it with respect for the judicial process.
“I welcome the US Court’s decision with humility and deep respect for the judicial process,” Adani said in a statement posted on X.
The dismissal, however, does not amount to a judicial finding that Adani was innocent of the allegations.
Garaufis specifically said his decision should not be interpreted as endorsing the Justice Department’s decision to abandon the case or as an assessment of the underlying allegations.
He also directed the Justice Department to provide additional information before he decides whether charges against other defendants should be dismissed.
US prosecutors charged Adani in 2024 with agreeing to bribe Indian government officials in an effort to secure approvals for a solar-energy project involving an Adani Group subsidiary.
Prosecutors also alleged that Adani and others misled US investors by providing assurances about the company’s anti-corruption practices.
Adani Group has consistently denied wrongdoing.
Adani has not appeared before a US court to personally respond to the criminal charges.
In a July 4 filing, McCotter argued that the case was primarily foreign in nature, difficult to prove and inconsistent with the Justice Department’s current enforcement priorities.
He also rejected reports that the decision to abandon the prosecution was influenced by Adani’s pledge to invest in the United States.
The investment pledge nevertheless became a central issue during the judge’s review.
Adani had previously committed to investing $10 billion in the United States.
In a sworn declaration filed on July 15, he acknowledged making the commitment and said his lawyers had informed the Justice Department during meetings that the investment could potentially form part of a resolution of the case.
Adani’s lawyer, Robert Giuffra, separately told the court that the defendants had indicated that the Adani Group was willing to follow through on the investment pledge as part of resolving the bribery case.
Garaufis said he was not taking a position on whether such offers were appropriate.
He nevertheless left the broader question to the public, writing that it was for the public to decide what effect offers of that nature could have on the equal administration of justice and the rule of law.
The dismissal of the criminal case comes as Adani-related legal matters remain before US authorities.
In a separate settlement with the US Securities and Exchange Commission, Gautam Adani agreed to pay $6 million, while his nephew, Sagar Adani, agreed to pay $12 million to resolve civil allegations.
Separately, Adani Enterprises Limited agreed to pay $275 million to the US Treasury Department to settle alleged violations of US sanctions involving Iran.
The developments have kept scrutiny on one of India’s most powerful corporate groups and its expanding international business interests.
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The decision has significant implications beyond Adani himself.
The bribery case had involved allegations concerning corruption, international investment and corporate disclosures, placing the conduct of one of India’s largest business groups under the scrutiny of US prosecutors.
The judge’s criticism has now shifted part of the focus to the Justice Department itself.
While Garaufis ultimately accepted the prosecution’s request to dismiss the charges, his comments highlighted concerns about how the decision was reached and the extent to which senior Justice Department officials can override the assessments of investigators and career prosecutors.
For Adani, the dismissal removes the immediate threat of the criminal prosecution in the United States.
For the Justice Department, however, the ruling leaves questions about prosecutorial discretion, transparency and the equal administration of justice—questions that could continue to attract scrutiny long after the criminal case itself has been closed.
