US Judge Seeks More Explanation Before Dismissing Gautam Adani Criminal Case

A US federal judge's decision to seek a fuller explanation from prosecutors before approving the dismissal of criminal charges against Gautam Adani is a routine procedural step and does not suggest the case is likely to proceed, according to legal experts.

The US Department of Justice (DoJ) has asked the court to dismiss the indictment against Adani and others, but US District Judge Nicholas Garaufis directed prosecutors to provide a more detailed explanation, saying their initial filing did not sufficiently justify the request. The DoJ has until July 13 to respond.

Senior US lawyer Chris Man said the order is consistent with Rule 48(a) of the Federal Rules of Criminal Procedure, which requires judicial approval before prosecutors can dismiss an indictment. While judges may seek clarification, they have very limited authority to compel the DoJ to continue a prosecution once it has decided to withdraw the case.

The case stems from a 2024 indictment in which US prosecutors accused Adani and others of securities fraud, wire fraud and participating in an alleged bribery scheme linked to renewable energy contracts in India. Adani has denied the allegations, while the DoJ later moved to drop the charges following a review of the case.

Man said there is virtually no modern precedent for a federal court forcing prosecutors to pursue charges the executive branch has chosen to abandon. He expects the DoJ to submit its explanation before the deadline, with the case likely to be dismissed within weeks , possibly without a hearing.

The proceedings resemble the corruption case involving New York City Mayor Eric Adams , where a judge sought additional explanations before ultimately approving the DoJ's request to dismiss the charges. Adani's legal team has argued the alleged transactions were outside US jurisdiction , involved non-US entities and caused no investor losses .