US DOJ seeks permanent dismissal of Adani case, says prosecution should not have proceeded
New York, July 4
The US Department of Justice has told a federal judge that the criminal case against Adani Group Chairman Gautam Adani and other defendants "should never have been brought," urging the court to permanently dismiss all charges while arguing that the prosecution was legally weak, largely centred on India, and no longer served the interests of justice.
In a detailed filing submitted to the US District Court for the Eastern District of New York, the DOJ defended its earlier request to dismiss the case with prejudice after the court sought a fuller explanation for the move. The department said that after an extensive review, "the decision to seek dismissal was not a close call."
The DOJ said the case was overwhelmingly connected to India, noting that the allegations involved "several Indians... allegedly tried to bribe other Indians... to get Indian contracts to provide Indian electricity to Indians in India." It added that "the United States pretending to be the world police can cause diplomatic strife and also wastes resources better spent on domestic concerns. India can better manage its internal systems than can prosecutors in Brooklyn and Washington."
The department also cited investigations conducted in India, saying the country "has investigated many of the allegations in this case" and "found no actionable misconduct." It further noted that no investors had suffered losses, with "two of the notes... fully paid back" and the remaining notes continuing to be serviced.
Separately, the DOJ said the securities fraud charges against Gautam Adani and Sagar Adani lacked a sound legal foundation, stating, "The securities charges should never have been brought." It argued that the alleged conduct occurred almost entirely in India and that the case faced significant jurisdictional hurdles under US securities laws.
On the Foreign Corrupt Practices Act (FCPA) charges against the remaining defendants, the department said the case no longer aligned with current DOJ enforcement priorities. It said the alleged conduct "did not involve criminal organizations, did not have any effect on U.S. companies, did not in any way implicate national security... and has been the subject of investigations in India," adding that "the FCPA charges should have been dismissed a year ago."
The filing also rejected media reports suggesting the dismissal was linked to proposed investments by the Adani Group in the United States. "I would have sought dismissal of the securities charges regardless of any mentions of investments," Principal Associate Deputy Attorney General R Trent McCotter wrote, adding that "the mention of potential investments could not have played any role."
"In short, there was absolutely nothing improper with the Department's as-filed dismissal motion, which has now been pending for six weeks, during which time the defendants have been held in limbo on charges that should have been dropped a year ago," DOJ said.
— ANI
Reader Comments
While I'm relieved for Adani ji, I hope this doesn't create a precedent where powerful business groups escape accountability. India must ensure its own investigative agencies remain robust and impartial. We can't rely on foreign courts to clean our house.
Excellent decision! The US trying to control everything like the world police was getting ridiculous. Let India handle its own affairs. Modi government should also clear his name domestically now.
As an American, I completely agree with this dismissal. We have enough problems here—crime, infrastructure, healthcare. Why chase cases in India where they have their own legal system? Focus on domestic issues first.
The DOJ's reasoning is spot on. Bribing Indians in India for Indian contracts to supply Indian electricity—how is that a US case? 🤔 The US should stop meddling in other countries' internal matters. At least they admitted it openly.
I'm surprised the DOJ was this honest about their own overreach. Usually governments never admit mistakes. But it's the right call—let India handle corruption in India. This also strengthens US-India relations.
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