US DoJ Says Biden-Era Case Against Gautam Adani Was Unlikely to Succeed, Seeks Dismissal
Justice Department says securities charges 'should never have been brought', cites jurisdictional issues and weak prospects of conviction.
NEW DELHI–The US Department of Justice (DoJ) has sought the dismissal of its criminal case against Adani Group Chairman Gautam Adani, saying the prosecution suffered from significant legal and evidentiary shortcomings and was unlikely to succeed if it went to trial.
In a filing submitted on July 4, the DoJ urged the court to drop the criminal securities charges, stating that, after an extensive internal review, it concluded the case “should never have been brought.”
The department said its decision was based on legal, jurisdictional and policy considerations and was reached after reviewing submissions from both prosecutors and defence lawyers.
In an unusually candid filing, the DoJ described the decision to seek dismissal as “not a close call” and acknowledged that continuing with the prosecution would likely have resulted in defeat because of what it termed “extraordinary proof problems.”
The department further stated that ending the prosecution before trial should be viewed as appropriate, noting that the case contained “numerous catastrophic flaws.”
A key factor behind the reassessment was the DoJ’s conclusion that the alleged conduct was overwhelmingly centred in India.
According to the filing, the case primarily involved Indian nationals, Indian government officials, contracts executed in India and electricity supplied within India. It also noted that Indian authorities had examined many of the allegations and found no actionable misconduct.
The DoJ also emphasised that investors had not suffered financial losses on the securities linked to the case, stating that “not a single penny has ever been lost on the securities at issue,” with the notes either repaid in full or continuing to perform.
Rejecting speculation surrounding its decision, the department said the move was unrelated to any prospective investments in the United States by the Adani Group. It added that the decision to seek dismissal had been made before any discussions on future investments and cautioned against relying on anonymous media reports regarding its motives.
The filing also takes aim at how the case was handled under the previous administration.
The DoJ questioned the decision to publicly unseal the indictment during the final days of the Biden administration, characterising it as an apparent “name-and-shame” exercise carried out “without any realistic prospect of a trial ever occurring.”
The remarks amount to a rare public critique by the Justice Department of one of its own high-profile corporate prosecutions.
For Gautam Adani and the Adani Group, the filing marks a significant legal reversal after nearly two years of intense scrutiny following the indictment, which affected investor sentiment, wiped billions off the group’s market capitalisation and triggered political and regulatory debate in India and abroad.
The court is yet to rule on the DoJ’s motion to dismiss. However, the filing represents a striking shift in the US government’s position, with the department itself concluding that the prosecution was fundamentally flawed and unlikely to withstand judicial scrutiny.
