In a major relief for billionaire industrialist Gautam Adani and the Adani Group, the United States Department of Justice (DOJ) has permanently withdrawn all criminal charges against him and his nephew Sagar Adani in a securities and wire fraud case filed in New York.
The court dismissed the indictment “with prejudice,” meaning the case cannot be reopened in the future. According to court filings in the US District Court for the Eastern District of New York, the DOJ said it had decided not to spend further prosecutorial resources on the matter after reviewing the case.
“The Department of Justice has reviewed this case and decided not to devote further resources to these criminal charges,” the filing stated.The decision marks a major turnaround in a case that had raised concerns over the Adani Group’s global expansion plans and investor confidence since late 2024.The development comes shortly after the US Securities and Exchange Commission (SEC) settled civil allegations linked to investor disclosures regarding solar energy projects in India.
As part of the settlement, Gautam Adani agreed to pay USD 6 million and Sagar Adani USD 12 million, without admitting or denying any wrongdoing.Separately, the US Treasury Department’s Office of Foreign Assets Control (OFAC) also closed its investigation into allegations related to LPG imports involving Iran sanctions. Reports said the Adani Group agreed to pay USD 275 million while cooperating with investigators and making voluntary disclosures.With the DOJ’s decision, several legal and regulatory proceedings involving the group in the United States have now been resolved within a short span.
Allegations Linked To Solar Contracts
The SEC and DOJ cases, filed in late 2024, had accused the Adanis of involvement in an alleged USD 265 million bribery scheme tied to solar power contracts in India. Prosecutors claimed the arrangement was hidden from American investors and lenders while raising funds.However, people familiar with the matter said prosecutors could not establish sufficient evidence or clear US jurisdictional links to continue the case. Legal experts had also questioned whether US authorities had exceeded their jurisdiction by pursuing alleged actions that took place entirely outside the United States.
Adani Team Challenged US Jurisdiction
In legal submissions made public on April 7, 2026, Adani’s lawyers argued that the SEC case represented an “impermissibly extraterritorial application” of US securities laws.The defence maintained that the matter involved Indian companies, Indian citizens and securities not traded on US stock exchanges, while all alleged actions took place in India. The filings also argued that the SEC lacked jurisdiction and failed to prove direct links between Gautam Adani, Sagar Adani and the bond offerings under investigation.The defence further noted that there were no investor losses and all bond obligations had been fully honoured.
Charges Limited To Fraud Counts
Court records showed that Gautam Adani, Sagar Adani and Vneet Jaain faced only securities and wire fraud charges. They were not accused under the more serious Foreign Corrupt Practices Act (FCPA) bribery provisions or obstruction-related counts filed against others in the wider case.The Adani Group had consistently denied all allegations and maintained that its governance and compliance standards remained strong.Legal experts described the dismissal as unusual in US criminal proceedings and said it generally indicates that prosecutors no longer see grounds to continue the case after extensive review.