'Case Should Never Have Been Brought': US DoJ Seeks Permanent End to Adani Prosecution

In a major development in the legal case involving Gautam Adani and seven others, the US Department of Justice (DoJ) has urged a federal judge to permanently dismiss the criminal charges, arguing that the prosecution was legally flawed, inconsistent with government policy and should never have been initiated.

In a strongly worded 10 page filing , the DoJ defended its decision to withdraw the case after US District Judge Nicholas Garaufis sought a detailed explanation for the department's earlier request to dismiss the indictment with prejudice, which would prevent the charges from being brought again.

The case dates back to 2024 , when the Biden administration accused Adani and others of participating in a USD 250 million bribery scheme involving Indian government officials. Prosecutors also alleged that investors were misled, enabling Adani Green Energy Ltd to raise at least USD 175 million from US investors.

However, Principal Associate Deputy Attorney General R Trent McCotter said that after reviewing evidence, legal submissions and holding discussions with defence lawyers, it became clear that the prosecution lacked merit. He stated that the decision to seek dismissal "was not a close call" and added that the case "should have been dropped a year ago or never brought in the first place."

The DoJ argued that the alleged misconduct was overwhelmingly centred in India , involved mainly Indian entities and had already been examined by Indian authorities, who found no actionable wrongdoing. It also pointed out that investors suffered no financial losses, key evidence and witnesses were located outside the United States, and the defendants were unlikely to appear before a US court.

The filing further questioned the basis of the securities fraud charges, saying the alleged transactions largely occurred outside US jurisdiction and that the statements cited by prosecutors amounted to corporate "puffery" rather than criminal fraud. It also said the Foreign Corrupt Practices Act (FCPA) charges no longer aligned with the department's enforcement priorities under a June 2025 policy focusing on national security, organised crime and serious harm to US companies.

Rejecting media reports that the case was dropped in exchange for potential investments by the Adani Group , McCotter called such claims "false". The DoJ urged the court to end the matter without delay, saying the defendants should not remain in legal uncertainty over charges the government itself no longer believes should proceed.