Adani Group stocks surged on Tuesday after the US Department of Justice withdrew all criminal allegations against billionaire Gautam Adani and his nephew Sagar Adani. Shares of several Adani Group firms, including Adani Enterprises, Adani Green, Adani Power, Adani Ports, Adani Energy, and Adani Total Gas, rose by as much as 3.5% following the effective closure of the securities and wire fraud case in New York.
End of Legal Uncertainty
The decision brought an end to a 19-month period that had pressured the conglomerate's expansion plans, complicated fundraising efforts, and resulted in the loss of certain contracts, according to an ET report.
Separate Settlement with US Treasury
Separately, the group reached a settlement with the US Treasury Department over civil allegations linked to sanctions violations, agreeing to pay $275 million while not admitting to any wrongdoing. Individuals named in the proceedings included Adani Group chairman Gautam Adani, Sagar Adani, Vneet Jaain, Ranjit Gupta, Cyril Cabanes, Saurabh Agarwal, Deepak Malhotra, and Rupesh Agarwal.
According to company filings, Adani Enterprises agreed to resolve potential civil liabilities related to alleged breaches of sanctions imposed by the Office of Foreign Assets Control (OFAC) concerning Iran. The company clarified that the settlement should not be interpreted as an admission of guilt or misconduct and that it fully settles all associated liabilities.
DOJ Motion to Dismiss
In a submission before the court, the US Justice Department requested that the indictment against the Adanis be dismissed with prejudice. “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 filing stated. Following this, the court directed that the indictment against Gautam Adani and the other accused be permanently dismissed.
The move represents a significant turnaround in a case that had created uncertainty around the Adani Group’s global expansion plans.
Background of the Case
The cases initiated by the US Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) in late 2024 had accused the Adanis of being part of a $265 million bribery arrangement allegedly involving Indian officials to obtain solar energy contracts. Prosecutors had also claimed that the alleged arrangement was not disclosed to American investors and lenders while the group was in the process of raising funds.
In a separate matter, Adani had previously agreed to an $18 million settlement in a civil case in the US linked to corruption-related allegations involving government authorities. He had faced accusations of involvement in an estimated $250 million bribery scheme aimed at securing high-value solar power supply deals.
Legal Strategy and Investment Pledge
A report published by The New York Times last week said Adani had hired a fresh legal team headed by Robert J. Giuffra Jr., one of US President Donald Trump’s personal lawyers and co-chair of the law firm Sullivan & Cromwell. The report further stated that Adani’s legal team met officials at the US Justice Department headquarters last month and proposed that, in exchange for dropping the charges, Adani would pledge investments worth $10 billion in the US and generate around 15,000 jobs.
According to the same report, Giuffra was also engaged in efforts to resolve parallel civil proceedings initiated by the SEC, along with a separate probe being conducted by the US Treasury Department.
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