Indian billionaire Gautam Adani is set to submit a sworn affidavit in a US federal court this week. The affidavit will address whether he had knowledge of any promise, agreement, or benefit linked to the US government's decision to dismiss a criminal indictment against him.
US District Judge Nicholas Garaufis has mandated Adani to file the affidavit by July 15. This order precedes the judge's ruling on the Justice Department's (DOJ) request to permanently drop the long-standing case, which accused Adani and seven others of bribery and misleading investors.
Background to the Dismissal
The judge's directive follows a June filing by R Trent McCotter, Principal Associate Deputy Attorney General at the US Department of Justice. McCotter asserted that he was the "final and sole decision-maker" behind the move to dismiss the indictment with prejudice. He explicitly denied media reports suggesting the dismissal was connected to the Adani Group's proposed $10 billion investment plans in the United States.
McCotter articulated several reasons for the DOJ's decision, stating that the securities fraud case was legally indefensible. Key arguments included that most of the alleged conduct occurred in India, Indian authorities had already investigated and found no actionable misconduct, investors had suffered no losses, critical evidence and witnesses were located outside the US, and the defendants were unlikely to appear before a US court.
Furthermore, McCotter noted that the Foreign Corrupt Practices Act (FCPA) charges no longer aligned with the Trump administration's enforcement priorities, which focused on cases involving US national security, American companies, or transnational criminal organizations. He characterized the decision to seek dismissal as straightforward, suggesting the charges should have been dropped a year prior.
Judge Seeks Transparency on Adani Affidavit
Judge Garaufis expressed concern that McCotter's filing introduced the possibility of an undisclosed agreement involving one or more defendants in connection with the dismissal. Previous explanations from Adani's lawyers regarding their consent to the government's motion to dismiss had made no reference to any such agreement, including any commitment to invest in the US.
Before approving the DOJ's request under Rule 48(a), the court stated it must be satisfied that the Justice Department's stated reasons for dismissal are genuine and that no undisclosed agreement influenced its decision. The original charges, filed in 2024 under the Biden administration, accused Adani and others of a scheme to pay approximately $50 million in bribes to Indian officials to secure power supply contracts and of misleading investors while raising capital from US markets. Adani has consistently denied these allegations.