US calls for dismissal of Gautam Adani case, cites diplomatic concerns

Washington: The US Justice Department has defended its decision to seek dismissal of fraud charges against Adani Group Chairman Gautam Adani, telling a New York court that the case primarily concerns a foreign jurisdiction, does not fall within its current enforcement priorities and could create unnecessary diplomatic tensions.

In a filing in the U.S. District Court for the Eastern District of New York, the department argued that pursuing the case would cast the United States in the role of “global police,” which could strain diplomatic relations while diverting resources from domestic law enforcement priorities.

The case stems from an indictment filed in November 2024, in which U.S. prosecutors accused Gautam Adani and his nephew, Sagar Adani, of orchestrating a $265 million scheme to bribe Indian officials to secure solar energy contracts and misleading U.S. investors about the company’s anti-corruption practices. Prosecutors had alleged that details of the payments were concealed in order to obtain financing from investors in the United States.

The Adani group has always denied these allegations. He had argued that Gautam Adani and Sagar Adani were charged with securities fraud in the US and not corruption.

In May this year, the administration of US President Donald Trump asked the court to dismiss the fraud charges. On June 26, Judge Nicholas Garaufis ordered the Justice Department to explain the reasons for its decision.

In response to the court, the department argued that the case, initiated under the previous Joe Biden administration, did not have a realistic prospect of reaching a trial. He asserted that the alleged conduct involved Indian nationals working for Indian companies dealing with the Indian government, without involving criminal organizations, U.S. companies, or U.S. national security interests.

The ministry further said that Indian authorities had already reviewed several of the allegations and found no actionable misconduct, arguing that India, which has the greatest interest in the matter, had concluded that no inappropriate conduct had been established.

The request to drop the charges came shortly after reports claimed that Gautam Adani’s legal team had informed the Justice Department of plans to invest $10 billion in the United States and create about 15,000 jobs if the charges were dropped.

Earlier reports also indicated that Adani had appointed a legal team led by Robert J. Giuffra Jr., one of President Donald Trump’s personal lawyers. According to reports, Giuffra met with Justice Department officials in Washington and presented a detailed legal argument challenging both the evidence and the department’s jurisdiction in the case.

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