US Drops Charges Against Adanis: A Clean Slate for Group, Says Senior Lawyer

"Very Positive Development for Adani Group and Country": Senior Advocate Raian Karanjawala on US DOJ dropping case against Adanis

New Delhi, May 19

Speaking on the development, Karanjawala said, "What we had thought would happen has happened. The criminal case has been dismissed and the civil case has also been settled. For the Adanis, it is now a clean chit and a clean slate from which they can continue their business."

Describing the development as important not only for the group but also from an Indian business perspective, he said allegations pending against one of the region's wealthiest businessmen in an international forum had affected business sentiment.

"It is a very positive development from the group's perspective and even from the country's perspective. When such charges hang over the head of a major industrialist, it obviously creates a dampening effect on business," Karanjawala said.

When asked whether the dropping of charges means Adani is now fully cleared in the United States, he responded, "Adani is fully clear."

Karanjawala further stated that since late 2024, the group had allegedly slowed down due to the pending proceedings. "From November 2024, the group was going two gears down because there were many constraints against them. Now I think they will be at full throttle to expand their business and make up for lost time," he said.

On the impact of the development on the image of the Adani Group, Karanjawala said the outcome would support Adani's long-standing position that there was no wrongdoing. "It will again establish what he always said, that he was innocent," he said.

However, when asked whether the case was politically motivated, Karanjawala declined to comment, saying, "Frankly, I would have no idea on that."Karanjawala also disclosed that the Adanis are clients of his law firm and that Gautam Adani is a personal friend.

The remarks came after the U.S. Department of Justice reportedly decided to permanently drop all criminal charges against Gautam Adani and Sagar Adani in a securities and wire fraud case pending in New York. According to reports, prosecutors concluded that they could not sustain the allegations.

The development reportedly brings the criminal proceedings in the United States to a close. Reports also stated that several U.S. regulatory and legal investigations involving the Adani Group have closed in recent days.

Last week, the U.S. Securities and Exchange Commission reportedly settled civil allegations relating to disclosures made to investors in connection with solar energy projects in India. Court filings reportedly showed that Gautam Adani agreed to pay $6 million and Sagar Adani $12 million, without admitting or denying wrongdoing.

— ANI