US Department of Justice drops all charges against Adani, court dismisses case
New York, May 18
In yet another significant development, the US Department of Justice has permanently dropped all criminal charges against Gautam Adani and his nephew, Sagar Adani, in an alleged securities and wire fraud case.
In a filing before the Eastern District of New York, the US Department of Justice requested dismissal of the indictment against Adani.
"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 Justice Department said.
The court then ordered that the indictment against Adani and others "be dismissed with prejudice".
The counsel for Gautam Adani and his nephew Sagar Adani had stated in court that there was no credible evidence supporting the alleged bribery scheme. They pointed out that the SEC lacked necessary jurisdiction over the two men and that the alleged misstatements underpinning the case weren't actionable.
The Adani Group had denied all allegations, stating that none of its entities or executives has been charged under the US Foreign Corrupt Practices Act, and that Adani Green Energy - the renewable energy arm that raised the funds - is not a party to the proceedings.
With this development, several US regulatory and legal investigations involving the Adani Group have been closed.
The US Securities and Exchange Commission (SEC) last week settled civil allegations against Adani.
Earlier on Monday, the US Treasury Department's Office of Foreign Assets Control (OFAC) announced that it has reached a $275 million settlement with Adani Enterprises Limited (AEL) over the "apparent violations" of sanctions on Iran in the company's purchase of LPG.
According to an OFAC statement, AEL has agreed to pay $275 million to settle its potential civil liability for apparent violations of OFAC sanctions on Iran.
"From November 2023 to June 2025, AEL purchased shipments of liquified petroleum gas (LPG) from a Dubai-based trader purporting to supply Omani and Iraqi gas. Red flags should have put AEL on notice that the LPG actually originated from Iran. During this time period, AEL caused US financial institutions to process 32 US dollar-denominated payments totalling approximately $192,104,044 for the shipments," the statement said.
— IANS
Reader Comments
Honestly, this feels like a political win for India on the global stage. The US backing off on charges against a major Indian industrialist sends a signal. But the SEC settlement and OFAC fine show there were real lapses. Transparency is key for Indian companies going global. 🇮🇳
The court dismissed with prejudice - that's final. But the $275 million penalty for Iran sanctions is huge. Means someone in Adani Enterprises wasn't doing proper due diligence. Hope this serves as a lesson for all Indian companies trading internationally - you can't ignore compliance even if business is booming.
Good that the bribery case is closed - baseless allegations waste everyone's time. But the OFAC settlement raises serious questions. $192 million in payments processed through US banks for Iranian gas? That's not just a red flag, it's a whole forest fire. Indian regulators should investigate too - not just let it go with a fine.
First the bribery charges dropped, then SEC settled, now OFAC settlement too. Looks like a coordinated cleanup before Modi's US visit. 🤔 The $275 million fine is peanuts for Adani but shows the US can still squeeze Indian companies. Need more self-reliance in energy and finance.
Finally some clarity! The DOJ dropping charges with prejudice means they can't refile. But I'm troubled by the Iran sanctions violation - 32 payments over 18 months! That's systematic, not a one-time mistake. Indian companies need better training on international sanctions. Adani should improve compliance instead of just celebrating.