Judge's Order in Adani Case Routine, DOJ Likely to Get Approval: Legal Expert

Judge's order in Adani Case a routine procedural step, DOJ likely to get court's approval: Raian Karanjawala

New Delhi, June 29

Speaking to ANI, Karanjawala said that while the US Department of Justice (DOJ) has broad discretion to decide whether to continue or withdraw a prosecution, it must obtain the court's permission before doing so.

"This is routine. The Department of Justice has a very high degree of discretion to decide whether it should continue or stop a prosecution. But it cannot do so by itself. It has to approach the court and seek what is known as the 'leave of the court'. That is exactly what is happening here," he said.

Karanjawala disclosed that the Adani Group is a client of his firm and that Gautam Adani is his friend. He also clarified that he is not a specialist in American law and that his views are based on his understanding of the legal process. Speaking on whether Judge Garaufis could reject the DOJ's request, Karanjawala said the judge's role is limited to ensuring that the prescribed legal procedure has been followed.

"The judge has to ensure that the proper legal procedure has been followed. His jurisdiction is limited. In the overwhelming majority of such cases, the public prosecutor is permitted to withdraw the case if it wants to," he said.

He added that the judge's decision to seek further details from the DOJ is part of the normal judicial process and does not indicate any adverse view.

"There is no reaction required from the DOJ. This is part of the normal process. The judge has asked for additional details and the Department of Justice will provide them," he said.

Karanjawala also said the proceedings are unlikely to face any significant delay because of the order.

"It is not as if the matter has been pushed back by several months. The DOJ will file its detailed response, and the matter will proceed in the normal course," he said.

Speaking on whether the Adani Group or the DOJ could file an appeal, he said that stage has not yet been reached.

"Appeal is always a legal option, but that stage has not yet come. For now, everyone has to wait for the court to consider the material placed before it and pass its order," he said.

Earlier, US District Judge Nicholas Garaufis, instructed the Justice Department to furnish a more comprehensive clarification regarding its petition to formally drop the indictment. Judge Garaufis noted that the federal prosecutors' May 18 notification indicating they would no longer move forward with the case did not provide an adequate explanation for their decision to withdraw the matter.

The US DOJ had decided to permanently drop all criminal charges against Gautam Adani and Sagar Adani in an alleged securities and wire fraud case pending in New York. Prosecutors had concluded that they could not sustain the allegations.

The Adani Group has maintained that the case against it suffered from fatal flaws. In a letter to the Court dated June 24, 2026, the company highlighted that the transactions were conducted by non-US issuers and lenders, governed by English law, and fell outside the scope of US securities law under the Supreme Court's ruling in Morrison v. National Australia Bank.

Furthermore, the defence highlighted that the bribery allegations lacked substance, supported by expert testimony from a former senior Indian regulatory official, which indicated that the alleged payments were transparent price reductions rather than illegal inducements. Adani also noted that there were no investor losses, as all bond and loan obligations have been met or are in good standing.

— ANI