The U.S. has dropped criminal fraud charges against Indian billionaire Gautam Adani, who was accused of deceiving investors in a major solar project.
U.S. prosecutors have requested a judge to dismiss criminal fraud and conspiracy charges against Indian billionaire Gautam Adani. The charges stemmed from allegations that Adani duped Wall Street investors who had invested billions into a significant solar project in India.
Adani, one of the wealthiest individuals globally, faced accusations in 2024 of paying substantial bribes to ensure the project’s success. He was indicted in federal court in Brooklyn on multiple charges, including conspiracy, securities fraud, and wire fraud, related to a lucrative agreement for Adani Green Energy Ltd. and another firm to supply 12 gigawatts of solar power to the Indian government, aiming to illuminate millions of homes and businesses.
The Adani Group has consistently denied these allegations, labeling them as baseless. In a court filing, prosecutors stated, “The Department of Justice has reviewed this case and has decided, in its prosecutorial discretion, not to devote further resources to these criminal charges against individual defendants.” The filing was signed by Principal Associate Deputy Attorney General R. Trent McCotter and Brooklyn U.S. Attorney Joseph Nocella Jr.
Judge Nicholas Garaufis must still approve the request to dismiss the charges. Lawyers for Adani and his co-defendants have consented to the request, according to prosecutors. Adani’s attorney, Robert Giuffra, declined to comment, as did lawyers Timothy Sini and Sean Hecker, who represent Adani’s nephew and co-defendant, Sagar Adani.
Notably, Adani was never arrested in connection with the case nor brought to the U.S. for trial. Some observers in India had anticipated that the case would be shelved after President Donald Trump suspended enforcement of the Foreign Corrupt Practices Act last year, a U.S. law that prohibits business bribes overseas.
The decision to drop the charges follows the U.S. Securities and Exchange Commission’s announcement that it was settling a related lawsuit against Adani.
Adani’s rise to prominence began in the 1990s with his ventures in the coal industry. Over the years, the Adani Group diversified its portfolio, investing in renewable energy, defense, and agriculture. The company has developed one of the world’s largest solar power plants and aims to become India’s leading player in the clean energy sector by 2030. Adani has maintained close ties with the Indian government and Prime Minister Narendra Modi.
However, the Adani Group has faced criticism. U.S.-based financial research firm Hindenburg Research accused Adani and his company of “brazen stock manipulation” and “accounting fraud.” In response, the Adani Group characterized these claims as “a malicious combination of selective misinformation and stale, baseless and discredited allegations.”
When the U.S. prosecutors charged Adani in 2024, they alleged that he and others misrepresented the solar deal to investors while simultaneously offering $265 million in bribes to Indian government officials to secure lucrative contracts.
The fallout from the allegations has been significant. Following the announcement of the charges, Kenya’s president canceled multimillion-dollar airport expansion and energy deals with Adani. Additionally, Adani Green Energy withdrew its wind energy projects from Sri Lanka after the country sought to renegotiate prices, and a French oil giant paused new investments in the company.
Analysts suggest that a crucial factor in Adani’s rapid ascent has been his ability to align the priorities of his business with those of the Modi government. Critics have accused him of crony capitalism and receiving preferential treatment from the government, particularly in securing contracts, which the Adani Group has denied.
As the legal proceedings evolve, the implications for Adani and his business empire remain to be seen.
According to Associated Press.