Winning Bizness Desk

Mumbai.A US federal judge has declined to immediately dismiss the criminal case against Indian billionaire Gautam Adani, directing the US Department of Justice to provide a detailed explanation for its decision to withdraw the prosecution. The order comes after federal prosecutors announced last month that they no longer intended to pursue the case. However, the court said a mere statement from the government was insufficient to formally close the proceedings, keeping the charges technically alive until a final judicial order is passed.

Government asked to justify withdrawal decision

US District Judge Nicholas Garaufis of the Brooklyn federal court refused to accept the government's request without scrutiny, saying prosecutors had failed to adequately explain why they wanted the case dismissed. Adani's legal team had formally sought dismissal earlier this week after federal prosecutors indicated on May 18 that they would abandon the prosecution involving alleged securities fraud and wire fraud linked to an alleged bribery scheme.

The judge observed that the government's brief and conclusory notice did not provide enough material for the court to properly evaluate the request.

Key developments in the case include:

• Federal prosecutors announced on May 18 that they would not proceed with the criminal prosecution.
• Adani's lawyers subsequently sought formal dismissal of the case.
• The judge has now directed the Justice Department to submit a detailed justification.
• Charges remain pending until the court formally dismisses the case.

Case spans two US administrations

The case has drawn attention because it stretches across two different US presidential administrations. Criminal charges against Adani were filed in late 2024 during the final months of Democratic President Joe Biden's administration. The decision to withdraw those charges has now emerged during Republican President Donald Trump's second term, when the Justice Department has also moved to terminate another high-profile white-collar criminal case.

Legal experts note that American judges generally possess limited authority to compel prosecutors to continue cases they no longer wish to pursue. Nevertheless, judicial approval remains necessary before criminal charges can be officially dismissed. A spokesperson for the Brooklyn US Attorney's Office declined to comment on the court proceedings.

What the allegations involve

The criminal case alleged that Gautam Adani agreed to pay bribes to Indian government officials to secure approvals for solar energy projects undertaken by an Adani Group subsidiary. Prosecutors further claimed that US investors were misled through representations about the company's anti-corruption practices.

Adani Group has consistently denied all allegations of wrongdoing. Gautam Adani himself has never appeared before a US court in connection with the matter.

Other major developments linked to the case:

• The US Securities and Exchange Commission has reached a civil settlement under which Gautam Adani will pay $6 million, while his nephew Sagar Adani will pay $12 million. • Separately, Adani Enterprises has agreed to pay $275 million to the US Treasury Department to resolve allegations involving violations of US sanctions related to Iran.

Defense cites legal and factual weaknesses

Adani's lead counsel Robert Giuffra argued in a June 24 letter to Judge Garaufis that the alleged conduct fell outside the jurisdiction of US criminal law. He maintained that prosecutors would be unable to prove bribery allegations concerning events that allegedly occurred in India.

According to the defence, multiple meetings were held with senior Justice Department officials, during which nearly 500 pages of documents were submitted explaining the legal and factual shortcomings in the prosecution's case. Giuffra argued that the Justice Department's decision reflected a careful reassessment of those weaknesses before opting to withdraw the charges.

Questions over internal differences

The developments have also highlighted reported differences within the Justice Department. In a letter submitted to the court last month, senior department officials stated that the government had decided not to devote further resources to pursuing criminal charges against the individual defendants. Notably, the career prosecutors who originally handled the case did not sign that communication.

The situation has revived comparisons with another controversial decision last year, when Justice Department officials in Washington moved to drop corruption charges against former New York Mayor Eric Adams despite strong objections from career prosecutors, several of whom later resigned. Judge Garaufis has now directed the Justice Department to submit a fuller explanation by July 13, after which the court will decide whether the criminal case against Adani should be formally dismissed.