The United States Department of Justice sought dismissal of criminal charges against Gautam Adani, Sagar Adani and others before a New York federal court, stating it no longer wished to allocate prosecutorial resources toward continuing the case.
The United States Department of Justice (DOJ) has approached a federal court in New York seeking dismissal of the criminal indictment filed against Gautam Adani, Sagar Adani and six other individuals.
The motion was submitted before Judge Nicholas G Garaufis of the United States District Court for the Eastern District of New York.
The US government informed the court that the Department of Justice had reviewed the matter and decided not to continue allocating prosecutorial resources toward pursuing the criminal charges against the accused individuals.
The filing stated,
“The government respectfully submits this motion, pursuant to Federal Rule of Criminal Procedure 48(a), requesting that the Court dismiss the indictment in this case with prejudice,”
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The DOJ further informed the court that none of the defendants had formally appeared in the proceedings and that lawyers representing all accused persons had consented to the dismissal request.
The application seeking dismissal was filed by Trent McCotter and Joseph Nocella Jr. The motion, however, remains subject to final approval by the court.
Even as the DOJ moved to withdraw the criminal prosecution, a parallel civil action involving the United States Securities and Exchange Commission continues.
Last week, the SEC proposed civil monetary penalties amounting to $18 million against Gautam Adani and Sagar Adani in connection with allegations that false and misleading statements were made during a 2021 bond offering linked to Adani Green Energy Limited.
The SEC proceedings are separate from the criminal indictment and relate specifically to disclosures made to investors during fundraising activities in international markets.
Gautam Adani, Sagar Adani and Vneet Jaain were represented by prominent American lawyers Robert J Giuffra Jr and James McDonald.
Incidentally, Robert Giuffra Jr is known for also serving as personal legal counsel to Donald Trump. Giuffra co-chairs the international law firm Sullivan & Cromwell LLP alongside Scott D Miller.
Other members of the legal team representing Adani-linked interests included Timothy Sini and Andrey Spektor.
The remaining defendants were represented by different international law firms and counsel. Ranjit Gupta was represented by Paul Schoeman in New York, while Cyril Cabanes was represented by Stephen Best in Washington DC.
Similarly, Saurabh Agarwal was represented by Winston Paes, whereas Deepak Malhotra was defended by Aditya Singh and Michael Kendall. Rupesh Agarwal was represented by Iris Bennett and Patrick Linehan.
Allegations Linked to Massive Solar Energy Project
The case originated from allegations surrounding a large-scale solar energy project involving approximately 12 gigawatts of power generation capacity.
According to the original indictment filed in the United States, the Solar Energy Corporation of India required electricity distribution companies operated by various Indian states to enter into Power Supply Agreements so that the overall project structure and associated Power Purchase Agreements could become commercially viable.
Federal prosecutors had alleged that bribes amounting to nearly Rs 2,029 crore approximately $265 million were promised to officials connected with state electricity distribution companies in India in order to secure favorable agreements for the project.
The indictment specifically claimed that around Rs 1,750 crore of the alleged bribe amount was earmarked for officials in Andhra Pradesh to facilitate procurement commitments for nearly 7 gigawatts of solar energy.
Investigators had further alleged that entities associated with the Adani Group raised more than $3 billion through loans and securities offerings involving American investors while allegedly concealing details of the purported bribery arrangement.
According to the prosecution’s earlier claims, Adani-linked companies issued approximately $750 million worth of senior secured notes in September 2021, with nearly one-fourth of those securities reportedly purchased by investors based in the United States.
The US authorities had argued that investors were not fully informed about the alleged corruption risks and internal arrangements linked to the solar project while the fundraising activities were underway.
The DOJ’s decision to seek dismissal of the criminal indictment marks a significant development in one of the most closely watched international corporate investigations involving an Indian business conglomerate.
If the federal court approves the request, the criminal proceedings against Gautam Adani, Sagar Adani and the other accused individuals would formally come to an end “with prejudice,” meaning the same charges cannot be refiled in the future.
However, the separate civil enforcement proceedings before the SEC are expected to continue independently despite the DOJ’s move to withdraw the criminal case.
Case Title: USA vs Gautam Adani & Ors.
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