US court ends all criminal charges against Gautam Adani, Sagar Adani and associate Vneet Jaain

Mangalore Today News Network

New Delhi, Aug 11, 2026: On Monday, a US court ended the long legal saga surrounding Gautam and Sagar Adani by dismissing all criminal charges against the two men and their associate Vneet Jaain at the request of the US government. Judge Nicholas Garaufis of the United States District Court for the Eastern District of New York dismissed criminal charges against the Adanis related to securities and wire fraud with prejudice - meaning that prosecution in the cases cannot be opened again - even as his judgement expressed concern at “irregularities” in the Trump Justice Department’s decision to cease pursuing charges against the Adanis. Separately, the court also finalised a settlement between the Adanis and the US Securities and Exchange Commission which will see the former pay the US government $18 million without admitting guilt and formally settle the civil securities fraud charges against them.

In a key judgement, Garaufis reserved judgement on bribery and obstruction of justice related charges for other defendants in the case.

What were the allegations against Adanis?

The decision comes almost two years after the US Justice Department unsealed an indictment in November 2024 alleging that the Adani group and its associates had been involved in a $265 million bribery scheme to win lucrative solar energy contracts with Indian government entities. In addition, the Adanis were accused of participating in an effort to defraud US and international investors by lying about the group’s anti-corruption activities. Associates of the Adanis were also charged with attempting to obstruct the investigations of US government entities by destroying evidence in the case. Separately, the US Securities and Exchange Commission also filed civil charges against Gautam and Sagar Adani related to the same case.

After a prolonged legal battle, the US Department of Justice told the court in May that it would decline to pursue further legal action against Gautam Adani and his associates. United States Principal Associate Deputy Attorney General Trent McCotter stated in a later July filing that the charges against the Adani group should not have been brought in the first place. He stated that the case largely dealt with matters in India, a foreign jurisdiction, and diverted resources away from domestic matters. The decision sparked significant controversy with media reports suggesting that the Adani group’s offer to invest in the US played a key role in the Justice Department’s decision.

In a rare move, judge Garaufis directed the Justice Department to provide reasons for dismissing the indictment against the Adanis, referring to the department’s motion to dismiss as “terse, bland and conclusory”. Garaufis also directed Gautam Adani to submit a sworn affidavit answering questions about whether the Indian billionaire was aware of any quid pro quo offered by anyone in exchange for the US Justice Department’s decision to end legal proceedings against him. In his response, Adani affirmed that he was not aware of any quid pro quo offer, while noting that his lawyers had suggested that his publicly stated intent to invest $10 billion in the US might be part of a resolution of legal charges against him. However, Adani added that the Department of Justice had made clear that promises of investment in the US would not influence their decision to pursue legal charges. This was consistent with statements made by principal associate deputy attorney general McCotter.

This tussle culminated in Garaufis’ order dismissing the criminal charges against Gautam and Sagar Adani on Monday. Garaufis noted that the court was satisfied, upon information being provided by the Justice Department, that the Adanis’ offer to invest $10 billion in the US was a “non-consideration” in the Department’s decision to stop pursuing charges. However, Garaufis’ judgement took issue with the US government’s move to dismiss all charges against all defendants in the case. Noting his list of concerns about the US government’s handling of the case, Garaufis singled out McCotter for criticism.

“As noted throughout this opinion, the irregularities in the decision to dismiss the Indictment are concerning. On the current record, McCotter appears to have eschewed the professional opinions of innumerable officials from various federal offices and replaced them with his singular judgment. The fact that McCotter came to this decision largely in collaboration with defense counsel, and seemingly without input from the FBI and SEC agents who investigated the alleged misconduct, or the attorneys from the Department, SEC, and US Attorney’s Office who brought the case, appears to be highly unusual,” reads the judgement. It also points out that McCotter was the sole decision maker in the move to dismiss charges and notes McCotter’s admission that current or former US government attorneys may disagree with the decision to drop charges.

Separately in May, Adani Enterprises Limited also reached a $275 million settlement with the US Treasury’s Office of Foreign Assets Control in connection with apparent violations of US sanctions on Iran.