The US Department of Justice (DOJ) has informed 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. 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, stating that after an extensive review, "the decision to seek dismissal was not a close call."
Case Overwhelmingly Connected to India
The DOJ argued that the case was overwhelmingly tied 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." The department 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."
India's Investigations Found No Misconduct
The DOJ 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.
Securities Fraud Charges Deemed Legally Weak
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.
FCPA Charges No Longer Align with DOJ Priorities
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."
No Link to Adani Investments in US
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."
DOJ Emphasizes No Impropriety in Dismissal Motion
"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," the DOJ said.
