US Court Dismisses Criminal Charges Against Gautam Adani

US District Judge Nicholas Garaufis has dismissed all criminal charges related to securities and wire fraud against Gautam Adani, Sagar Adani and Vneet Jaain with prejudice, Reuters reported. The dismissal on 10 August 2026 means the prosecution cannot reopen these cases.

The court also finalised an $18mn settlement between the Adanis and the US Securities and Exchange Commission. This resolves the civil securities fraud charges without the defendants admitting guilt.

Gautam Adani welcomed the ruling on X. "I welcome the US court’s decision with humility and deep respect for the judicial process. Throughout this challenging period, our faith in truth, fairness and the rule of law remained unwavering" Reuters reported.

Adani added: "My deepest gratitude to those who never lost faith in us, in the system and in India’s capacity for justice" noting the Adani name will work towards "building for our nation".

The Bribery Allegations

The US Department of Justice unsealed an indictment in November 2024. The document stated the Adani Group ran a $265mn bribery scheme to secure solar energy contracts in India.

Authorities accused the Adanis of defrauding US and international investors. The group allegedly misrepresented its anti-corruption activities to financial stakeholders. Associates of the Adanis were also charged with attempting to obstruct the investigations of US government entities by destroying evidence in the case.

In a separate matter in May 2026, Adani Enterprises reached a $275mn settlement with the US Treasury's Office of Foreign Assets Control. This resolved apparent violations of US sanctions on Iran.

Quid Pro Quo Inquiry

The US Department of Justice informed the court in May 2026 that it would decline further legal action against Gautam Adani and his associates.

Principal Associate Deputy Attorney General Trent McCotter submitted a July filing. He said the charges should not have been brought. McCotter argued the case largely dealt with India, a foreign jurisdiction, and diverted resources away from domestic matters.

Media reports soon suggested the Adani Group's offer to invest $10bn in the US influenced the department's reversal. Judge Garaufis demanded formal explanations, referring to the department’s motion to dismiss as “terse, bland and conclusory”, and required a sworn affidavit from Gautam Adani.

Adani submitted the required affidavit. He denied any knowledge of a quid pro quo. However, he noted his lawyers suggested the $10bn investment might form part of a legal resolution.

Concerns Over Irregularities

Judge Garaufis accepted that the $10bn investment was a 'non-consideration'. He nonetheless expressed deep concern over 'irregularities' in the Trump Justice Department's decision to drop the case.

He criticised McCotter for acting as the sole decision-maker in collaboration with defence counsel, noting McCotter’s admission that current or former US government attorneys may disagree with the decision to drop charges. The move bypassed the FBI, SEC and prosecuting attorneys who investigated and filed the case.

"As noted throughout this opinion, the irregularities in the decision to dismiss the Indictment are concerning. On the current record, McCotter appears to have eschewed the professional opinions of innumerable officials..." Garaufis said in the judgement, REUTERS reported.

The judge ultimately reserved judgment on the bribery and obstruction of justice charges for other defendants involved in the case.