By NE NOW NEWS
Guwahati: A US court has sought a detailed explanation from the Department of Justice before allowing its request to withdraw fraud charges against Adani Group chairperson Gautam Adani, Reuters reported.
The matter came up before Judge Nicholas Garaufis of the US District Court for the Eastern District of New York, who decided not to immediately approve the dismissal sought by federal prosecutors. Instead, the court directed the Justice Department to file a more detailed justification by July 13.
Reuters reported that Judge Garaufis found the government’s submission too brief to permit proper judicial review, saying it failed to provide enough material for the court to assess the request.
The case stems from an indictment filed in November 2024, in which US prosecutors accused Gautam Adani and his nephew, Sagar Adani, of carrying out an alleged $265 million scheme involving payments to Indian officials to secure solar energy contracts.
They were also accused of misleading US investors regarding the company’s anti-corruption practices.
According to US prosecutors, details of the alleged payments were concealed while the company sought financing from investors.
The Adani Group has denied all allegations. In a stock exchange filing issued in November 2024, it stated that Gautam Adani and Sagar Adani had been charged in the United States with securities fraud and not bribery.
The administration of US President Donald Trump, on May 18, requested the court to dismiss the criminal case against Gautam Adani.
In its filing, the Justice Department said it had chosen, as a matter of prosecutorial discretion, not to continue devoting resources to pursuing the charges against the individual defendants.
The criminal proceedings can be withdrawn only if Judge Garaufis approves the government’s application.
The request followed reports claiming Adani’s legal team had informed the Justice Department that he intended to invest $10 billion in the United States and generate about 15,000 jobs if the prosecution was dropped.
Earlier this month, two Democratic senators criticised the reported proposal, saying it appeared to amount to an improper quid pro quo arrangement.
The New York Times, on May 14, reported that the Justice Department was considering dropping the prosecution after Gautam Adani retained a legal team led by Robert J. Giuffra Jr., one of President Donald Trump’s personal lawyers.
The newspaper said Giuffra met Justice Department officials in Washington in April and presented nearly 100 slides arguing that prosecutors lacked sufficient evidence and jurisdiction, citing people familiar with the meeting.
According to the report, one of the presentation slides referred to proposed investments by Gautam Adani in the United States.
The New York Times also reported that financial penalties are still expected even if the criminal prosecution is withdrawn.
The newspaper further said Giuffra sought to resolve a separate civil enforcement action brought by the US Securities and Exchange Commission during the same discussions.
The Financial Times later reported that the SEC reached a settlement with Gautam Adani on May 14. Under that agreement, Gautam Adani agreed to pay $6 million, while Sagar Adani agreed to pay $12 million.
Adani Green Energy informed stock exchanges on May 15 that it was not a party to the SEC proceedings and that no charges had been filed against the company.
The company nevertheless confirmed that Gautam Adani and Sagar Adani had agreed to pay civil penalties, while stating that the settlement was reached without admitting or denying the allegations in the complaint.
It added that the matter remains subject to the final judgment of the US District Court for the Eastern District of New York.
The US Treasury announced on May 18 that it had reached a $275 million civil settlement with Adani Enterprises, the flagship company of the Adani Group, to resolve allegations involving Iran-related sanctions.