US to drop criminal fraud case against Gautam Adani

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The U.S. Department of Justice is reportedly nearing a decision to drop criminal fraud charges against Gautam Adani, according to two sources familiar with the matter. The development comes as Adani has pledged to invest $10 billion in the U.S. economy.

On Thursday, Adani reached a settlement in a related civil fraud case brought by the U.S. Securities and Exchange Commission (SEC) over allegations that he participated in a scheme to bribe Indian government officials. The agreement remains subject to court approval.

The Adani Group did not respond to Reuters’ request for comment regarding reports that the criminal charges could be dropped. The conglomerate has previously dismissed the allegations as “baseless.”

Shares of Adani Group companies traded mixed on Friday after initially rallying on the news. Adani Enterprises rose as much as 3.2% in pre-open trading before trimming gains to 0.8% in morning trade. Meanwhile, Adani Green Energy slipped 0.08%, while Adani Energy Solutions fell 1.26%. Adani Ports and Special Economic Zone Limited advanced 1.64%.

According to one source, the potential dismissal follows a presentation last month by Adani’s lawyer, Robert Giuffra, who also serves as a personal attorney to U.S. President Donald Trump. Giuffra reportedly argued to Justice Department officials that the ongoing criminal case was hindering Adani’s ability to move forward with the proposed U.S. investment.

Following Trump’s victory in the 2024 U.S. presidential election, Adani publicly committed to investing $10 billion in the United States and creating approximately 15,000 jobs.

Sources said Giuffra’s 100-page presentation focused heavily on challenging the legal basis of the case, arguing that prosecutors lacked jurisdiction and sufficient evidence. Similar arguments were also made in recent court filings tied to the SEC’s parallel civil proceedings.

One source noted that some prosecutors insisted the promised investment would not influence the criminal case, though it remains unclear whether all officials shared that position.

The Justice Department has not yet commented publicly.

The case marks another instance in which Trump’s Justice Department has sought to reconsider or scale back high-profile prosecutions initiated during the administration of former President Joe Biden.

Federal prosecutors first charged Adani in November 2024, alleging that he orchestrated a bribery scheme involving roughly $265 million in payments to Indian government officials in exchange for approvals tied to what prosecutors described as India’s largest solar power project.

Prosecutors further alleged that Adani and several associates raised more than $3 billion through loans and bond offerings while concealing the alleged corruption from investors and lenders. The Adani Group has consistently denied all wrongdoing.

The SEC’s related civil case also named Adani’s nephew, Sagar Adani. Court filings show the two agreed to pay a combined $18 million in civil penalties without admitting or denying the allegations.

In a statement, Adani Green Energy said both men and the SEC had jointly requested a final judgment from a New York court and were awaiting approval.

Last month, lawyers representing the Adanis argued that the SEC had failed to provide credible evidence supporting the alleged bribery scheme. They also contended that the regulator’s claims were “impermissibly extraterritorial,” noting that the bonds in question were never traded on a U.S. exchange.

Even if U.S. criminal charges are ultimately dropped, the Adani Group continues to face scrutiny in India. According to two sources with direct knowledge of the matter, Indian regulators are still reviewing at least nine allegations concerning possible violations of securities laws involving the conglomerate and several offshore funds.

The Securities and Exchange Board of India (SEBI) declined to comment.

Last year, SEBI dismissed three allegations tied to stock manipulation, insider trading, and failures to disclose related-party transactions involving Adani Group executives. Those accusations had been raised by U.S.-based short seller Hindenburg Research.