The United States Department of Justice (DOJ) has forcefully urged a federal judge to permanently dismiss the criminal case against Adani Group chairman Gautam Adani and seven co-defendants. In a detailed 10-page filing, the department contended that the prosecution was fundamentally flawed and should never have been initiated.
DOJ Cites Multiple Reasons for Dismissal
US District Judge Nicholas Garaufis had previously questioned the DOJ's initial, more succinct request for dismissal, calling it "terse, bland, and conclusory." In response, the department provided an extensive explanation for its decision to abandon the case with prejudice, meaning the charges cannot be refiled.
Principal Associate Deputy Attorney General R. Trent McCotter highlighted six primary reasons for seeking dismissal:
- The alleged conduct was predominantly centered in India.
- Indian authorities had already investigated the allegations and found no actionable misconduct.
- Investors had not suffered financial losses.
- Key witnesses and evidence were located overseas.
- Defendants were unlikely to appear before a US court.
- The prosecution faced significant evidentiary hurdles.
McCotter emphasized that forcing prosecutors to publicly justify such decisions could undermine the executive branch's constitutional authority and expose privileged internal debates, potentially harming future defendants.
A 'Foreign Case' with Limited US Nexus
A central argument by the DOJ is that the case is overwhelmingly foreign in nature. McCotter described the indictment as concerning "several Indians (with maybe a European or two) allegedly trying to bribe other Indians by paying the Indian government via complex Indian rebate programs to get Indian contracts to provide Indian electricity to Indians in India."
He questioned the United States' role as "world police," suggesting it could lead to diplomatic friction and waste resources better spent on domestic concerns. The DOJ asserted that India is better equipped to manage its internal systems than prosecutors in Brooklyn and Washington.
Challenging Securities Fraud and FCPA Charges
The filing also directly challenged the legal foundation of the criminal securities fraud charges against Gautam Adani, Sagar Adani, and Cyril Cabanes. The department argued that the alleged misconduct occurred almost entirely outside the US and did not meet the jurisdictional requirements for prosecuting criminal securities fraud in American courts.
Furthermore, the DOJ stated that investors had not incurred losses, as the notes in question were either fully repaid or continued to be serviced. It also characterized statements cited in the indictment as corporate "platitudes" and "puffery" that sophisticated institutional investors would likely not rely upon, suggesting they warranted civil rather than criminal proceedings, at most.
Regarding the Foreign Corrupt Practices Act (FCPA) charges, the department noted they no longer aligned with the Justice Department's enforcement priorities outlined in Deputy Attorney General Todd Blanche's June 2025 memorandum. This memo prioritizes cases involving US national security, transnational criminal organizations, or serious harm to American companies—none of which, the DOJ argued, applied to the Adani case.
Rejection of Investment Deal Reports
McCotter explicitly rejected media speculation that the department agreed to drop the prosecution in exchange for investment commitments from the Adani Group. He stated, "I would have sought dismissal of the securities charges regardless of any mentions of investments," confirming that potential investments played no role in the decision.
The case originated in 2024 under the Biden administration, when the DOJ indicted Adani and others on allegations of a scheme to pay approximately $250 million in bribes to Indian government officials and mislead investors to secure billions in funding. The department now urges the court to dismiss the indictment without further delay, stating the defendants have been held in limbo on charges that should have been dropped earlier or never brought at all.