DOJ Dismisses Adani Charges, Denies Investment Link
The United States Department of Justice (DOJ) has firmly denied that its decision to drop criminal charges against Indian billionaire Gautam Adani and seven others was influenced by the Adani Group's proposed $10 billion investment in the US. In a court filing, the DOJ stated that the prosecution was legally unsustainable and should never have been brought.
Court Filing Rejects Media Reports
Principal Associate Deputy Attorney General R. Trent McCotter, responding to a federal judge's demand for a fuller explanation, rejected media reports suggesting the dismissal was tied to the conglomerate's investment plans. McCotter wrote, “The current or former Department attorneys... have suggested that I sought dismissal of the securities charges at least in part because of some promise by those defendants to invest money in the United States. That is false.” He added, “I would have sought dismissal of the securities charges regardless of any mentions of investments,” emphasizing that the decision was made before any investment discussion arose.
Background of the Case
The DOJ had indicted Adani and others in 2024 under the previous Biden administration, alleging involvement in a scheme to bribe Indian government officials to the tune of $250 million and mislead investors. The indictment claimed that Adani Green Energy Ltd raised at least $175 million from US investors during the alleged scheme. However, the DOJ now argues that the charges should be dropped because the alleged conduct occurred almost entirely in India, Indian authorities found no actionable misconduct, investors suffered no losses, and key evidence and witnesses were outside the US.
Legal Arguments for Dismissal
McCotter stated, “The decision to seek dismissal was not a close call.” The DOJ argued that the securities fraud charges were weak due to lack of US jurisdiction and that the Foreign Corrupt Practices Act (FCPA) charges no longer align with the Trump administration's enforcement priorities, which focus on cases affecting US national security, American companies, or transnational criminal organizations. McCotter added, “The FCPA charges should have been dismissed a year ago.”
Court Order and Response
The filing came after US District Judge Nicholas Garaufis described the earlier motion to dismiss as “terse, bland, and conclusory” and ordered prosecutors to explain their reasoning. The DOJ urged the court to promptly grant the motion, stating that continued scrutiny would intrude on the executive branch's prosecutorial authority and leave defendants “in limbo on charges that should have been dropped a year ago - or never brought in the first place.”
