Judge's Order Routine, Not a Roadblock
US lawyer Adam Goldberg has clarified that the US District Court's order seeking further clarification from the Department of Justice (DOJ) on its motion to dismiss the indictment against Gautam Adani and Sagar Adani is a routine procedural matter. Speaking to ANI, Goldberg emphasized that judges rarely disapprove such requests from the DOJ.
US District Judge Nicholas Garaufis had instructed the Justice Department to provide a more comprehensive explanation for its May 18 notification indicating it would no longer pursue the case. The judge noted that the initial notification lacked adequate justification for withdrawing the matter.
DOJ Holds Prosecutorial Authority
According to Goldberg, the DOJ retains primary authority over prosecution decisions. "The judge has the authority to approve, but not the authority to overrule the Department of Justice," he stated. He explained that in rare instances where district judges reject a DOJ motion to dismiss, the decision typically goes through an appellate process, where such rejections are often overturned.
Goldberg further noted that a judge's role is limited to ensuring the decision to drop charges is made in good faith. "The district court judge does not have significant authority to overrule what the Department of Justice wants to do," he added.
Expected Outcome: DOJ Will Provide More Information
Goldberg predicted that the DOJ would respond to the judge's request by providing the additional information sought. "What tends to happen is they will provide as little information as they can in the first instance. The judge has decided he wants to see more, so they will provide more information, and my guess is that will then ultimately result in the judge approving," he said.
He dismissed the possibility of the judge forcing the DOJ to proceed with the case, calling it "incredibly unlikely" given the DOJ's authority. If the judge did reject the motion, Goldberg noted that the decision could be appealed, but advised the Adani Group to wait for the process to conclude, which he expects to happen shortly.
Background: DOJ Drops Charges
Earlier, the US DOJ decided to permanently drop all criminal charges against Gautam Adani and Sagar Adani in an alleged securities and wire fraud case in New York. Prosecutors concluded they could not sustain the allegations. The Adani Group has consistently maintained that the case suffered from fatal flaws.
In a letter to the court dated June 24, 2026, the company argued that the transactions involved non-US issuers and lenders, were governed by English law, and fell outside US securities law under the Supreme Court's ruling in Morrison v. National Australia Bank. The defence also contended that bribery allegations lacked substance, supported by expert testimony from a former senior Indian regulatory official indicating that the alleged payments were transparent price reductions, not illegal inducements. Additionally, Adani noted there were no investor losses, as all bond and loan obligations had been met or were in good standing.
