New Delhi/New York: Industrialist Gautam Adani and his nephew Sagar Adani have got major legal relief in the ongoing criminal case in America. The US District Court for the Eastern District of New York has permanently dismissed the criminal charges against the two.
With the approval of the petition filed by the US Justice Department, the criminal proceedings that had been going on for almost two years ended. Former CEO of Adani Green Energy Limited, Vaneet Jain was also an accused in the case.
However, this decision of the court does not mean that the original allegations have been found true or false. The criminal proceedings ended before the case could even begin trial and no judicial findings were made based on the allegations.
DOJ's petition approved under Rule 48(a)
The New York court accepted the petition filed under Rule 48(a) of the US Justice Department. Judge Nicholas Garofis had asked the prosecution for additional clarification on the reasons for withdrawing the case.
After reviewing the government's arguments and the affidavits filed by the accused, the court accepted the petition and permanently dismissed the case.
This means that criminal proceedings can no longer be reopened on these charges.
The case started in November 2024
This matter came to light in November 2024. US prosecutors had alleged that Gautam Adani, Sagar Adani, Vaneet Jain and others were involved in a conspiracy to pay bribes to Indian government officials amounting to approximately US$250 million.
According to prosecutors, the purpose of the alleged bribes was to secure contracts for solar energy projects that were expected to generate after-tax profits of more than US$2 billion over nearly two decades.
US prosecutors had also alleged that it misled investors while raising more than US$3 billion by issuing loans and bonds in the US market.
Adani Group has consistently rejected these criminal allegations and termed them baseless, saying the Group has complied with all applicable laws and regulatory requirements.
What did the Trump administration say against pursuing the case?
It was said in the court on behalf of the Trump administration that it is no longer in the interest of justice to pursue this case.
The government cited challenges related to jurisdiction and evidence in its case. Apart from this, reasons like the alleged incidents being mainly related to India, investigation by Indian authorities, no obvious loss to investors and wider public interest were also cited.
The Justice Department also said the impeachment, made public in the final days of the then-Biden administration in November 2024, had little realistic chance of reaching trial. The government also described it as an attempt to defame for political purposes.
What did the court say?
Judge Nicholas Garofis dismissed the charge, saying he was satisfied that Gautam Adani's announcement of investing US$10 billion in the US in November 2024 had no connection with the Justice Department's decision to drop the cases.
He also said the court has a limited role in reviewing decisions by federal prosecutors to drop cases.
Earlier, the judge had directed the Justice Department to publicly explain the reasons for withdrawing the case. The accused were also asked to file an affidavit confirming that no promise, offer, transaction or confidential agreement was made in exchange for closing the case.
What did Gautam Adani say on the decision?
Gautam Adani welcomed the US court's decision. He said on social media platform 'X' that he has accepted this decision with humility and deep respect for the judicial process.
He said that his faith in truth, fairness and rule of law remained intact during challenging times. He expressed his gratitude to all those who reposed faith in him, the system and the efficiency of India's judicial system.
Adani said the group will continue to work towards building India, creating long-term value and serving a purpose larger than itself.
SEC's separate action also ends
The US Securities and Exchange Commission's (SEC) separate action against Gautam Adani has also ended with the final order.
In this case, Adani has agreed to the order without accepting the allegations. As per the final order, he will have to pay a fine of US$60 lakh to the SEC within 30 days.
The proceedings ended before the trial even started.
An important aspect of the permanent dismissal of the criminal case against Adani is that its trial had never even begun.
By the time the case was over, no witnesses had been cross-examined, no evidence had been examined in court, and no judicial findings had been made on the original criminal charges.
The permanent dismissal of the case therefore marks the end of the criminal proceedings, but does not constitute an acquittal by the court on the original charges or a judicial decision on the merits of the charges.
Global surveillance increased after Hindenburg report
This development comes in the backdrop of increased global surveillance on the Adani Group following a report by now defunct short selling firm Hindenburg Research in January 2023.
Following the report, there was a massive selloff in the shares of Adani Group companies and at one point the group's market capitalization declined by more than US$150 billion.
Adani Group has also consistently rejected Hindenburg Research's allegations and said it has complied with all applicable laws and disclosure rules.
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