The US Justice Department (DOJ) has formally defended its controversial decision to drop criminal charges against Indian billionaire Gautam Adani, steadfastly denying that a reported pledge to invest billions of dollars in the United States influenced the move.
Adani and several associates were indicted in 2024 in Brooklyn, New York, facing accusations of a massive fraud and bribery scheme. Prosecutors alleged Adani paid $250 million to Indian government officials to secure a lucrative bid for developing India's largest solar power plant, a contract projected to yield $2 billion in profits over two decades. They also claimed Adani misled US investors by concealing these illicit payments.
DOJ Cites 'Indefensible' Case, Foreign Focus
Trent McCotter, the principal associate attorney general, explained in a letter that the government had decided to forgo the charges before any investment offer was ever raised. He stated that the case was deemed “so indefensible” and that his decision was independent of any investment discussions. “I would have sought dismissal of the securities charges regardless of any mentions of investments, regardless of whether the civil case (or any other matter) was settled or otherwise resolved,” McCotter wrote.
McCotter further argued that the case was predominantly a foreign matter, with the alleged misconduct centered on Indians attempting to bribe other Indians. He highlighted that the term “India” appeared over 200 times in the filing, suggesting the issue was best managed by India itself rather than US prosecutors. He also noted that US investors did not suffer any financial losses from the transactions central to the charges.
Congressional Scrutiny and Unresolved Dismissal
Despite the DOJ's defense, the decision has drawn criticism. In May, the government formally requested that the indictment be permanently dismissed, citing prosecutorial discretion and a decision not to devote further resources to the case. This request, signed by McCotter and Joseph Nocella, the US attorney for Brooklyn, notably lacked the signatures of the line prosecutors initially assigned to the case.
A month later, Democratic Senators Elizabeth Warren and Richard Blumenthal raised concerns about the “reportedly ‘transactional nature’” of the decision. They questioned the potential role of Adani’s politically significant investment offer under President Trump’s administration in the DOJ's decision. US District Judge Nicholas Garaufis has yet to approve the department's request to permanently throw out the indictment, leaving the final resolution pending.