Summary
Two sources familiar with the matter told Reuters that the U.S. Justice Department is moving toward dropping criminal fraud charges against Gautam Adani. At the same time, court records show Adani settled a related civil fraud action brought by the Securities and Exchange Commission (SEC), with the settlement contingent on court approval. The legal moves come after a major presentation by Adani's attorney arguing the case was flawed and after public promises by Adani to make a $10 billion investment in the U.S. economy and create 15,000 jobs.
What the filings and sources say
According to two sources, Justice Department officials are close to dismissing a criminal case that had been brought against Adani in November 2024. That criminal case accused him of participating in a scheme to pay roughly $265 million in bribes to Indian government officials to secure approval for what prosecutors said would be India's largest solar power project. Prosecutors alleged that Adani and his alleged co-conspirators concealed the corruption from lenders and investors while raising more than $3 billion through loans and bonds.
Adani and the Adani Group have described the allegations as baseless. One of Adani's lawyers, Robert Giuffra - who also serves as a personal attorney to U.S. President Donald Trump - delivered a 100-page presentation last month to Justice Department officials. Sources said Giuffra argued the criminal case lacked proper jurisdiction and sufficient evidence, and that the ongoing litigation prevented Adani from carrying out a publicly announced $10 billion U.S. investment.
Giuffra made similar jurisdictional and evidentiary arguments in filings in the parallel SEC case last month, according to court filings. Sources said Giuffra emphasized that Adani could not proceed with the $10 billion investment while the criminal case remained active, although some prosecutors reportedly indicated the investment pledge would not influence the criminal prosecution. It is not clear whether all prosecutors agreed on that point. The Justice Department did not immediately respond to a request for comment.
SEC civil case resolved subject to court sign-off
Court records show the SEC reached a settlement with Gautam Adani on a related civil fraud lawsuit, pending approval by a New York court. The settlement also involves Sagar Adani, Gautam Adani's nephew, who faced parallel civil claims. Under the terms recorded, the two men would pay civil penalties totaling $18 million but would neither admit nor deny the allegations.
Adani Green Energy issued a statement saying that the parties had filed for the entry of a final judgment in New York and that they were awaiting the court's decision. The Adanis' lawyers had previously argued there was no credible evidence supporting the SEC's version of a bribery scheme, contending that the Adanis lacked involvement in the bond offering and that there was no intent to defraud or negligence. They also contended that the SEC's claims were impermissibly extraterritorial, noting the alleged misconduct and the transactions were in India and the bonds were not listed on a U.S. exchange.
Context and timeline
Federal prosecutors in Brooklyn charged Adani in November 2024 with scheming to pay about $265 million in bribes and then hiding that conduct from lenders and investors while raising more than $3 billion in loans and bonds. The SEC's civil action alleged similar misconduct and was resolved with the $18 million civil penalties noted above, pending judicial approval. Bloomberg News first reported that the Justice Department was close to dismissing Adani's criminal case.
Market and legal implications
The potential dismissal of the criminal case and the SEC settlement are significant legal developments for Adani and related companies. The outcome could remove a major legal overhang that had impacted perceptions of the group's governance and risk profile. At the same time, the SEC settlement requires a court to enter final judgment before it becomes binding, and the Justice Department has not publicly confirmed a decision to drop the criminal charges.
Remaining questions
- It is not publicly known whether all Justice Department prosecutors concur with the move to dismiss the criminal case.
- The SEC settlement remains subject to a judge's approval in New York before it becomes final.
- The Justice Department had not issued a comment at the time the sources spoke, leaving timing and formalization of any dismissal uncertain.
Person and financial notes
The 63-year-old Gautam Adani was described in the source material as having a net worth of $82 billion according to Forbes, making him one of the world’s wealthiest individuals. The Adani Group has disputed the allegations in both the criminal and civil cases, characterizing them as unfounded.
Reporting note
This article reflects details from court records and accounts provided by sources familiar with the matter. The financial and legal outcomes described here were reported as developments pending official filings and approvals.