US authorities move to end fraud cases against Gautam Adani, Bloomberg reports
People familiar with the matter told Bloomberg News that the US Department of Justice (DOJ) may announce the withdrawal of criminal charges as early as this week.
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US authorities are reportedly moving towards resolving the long-running criminal and civil fraud cases against billionaire industrialist Gautam Adani, a development that could bring an end to an investigation hanging over the Adani Group for more than 18 months, according to a report by Bloomberg on Thursday. (Gautam Adani fraud case)
People familiar with the matter told Bloomberg News that the US Department of Justice (DOJ) may announce the withdrawal of criminal charges as early as this week. At the same time, the US Securities and Exchange Commission (SEC) is said to be working towards a settlement in the parallel civil fraud case, which is expected to involve financial penalties.
The controversy began after a federal indictment was unsealed in a Brooklyn court on November 20, 2024. Prosecutors alleged that Gautam Adani, his nephew Sagar Adani, Adani Green Energy executive Vneet Jaain, and several others were involved in a scheme to pay or promise more than USD 250 million in bribes to Indian government officials. Investigators claimed the payments were aimed at securing lucrative solar energy contracts expected to generate billions in profits. (Gautam Adani fraud case)
The latest development comes weeks after a US federal judge approved a request by the defendants for a pre-motion conference, allowing them to move forward with efforts to dismiss the SEC’s securities fraud lawsuit. In their filing, the Adani side argued that the matter concerns Indian citizens, an Indian company, and securities neither listed nor traded in the United States, making the SEC’s action an improper extraterritorial application of American law. (Gautam Adani fraud case)
The criminal proceedings had largely remained inactive since late 2024, with little movement on the docket. Meanwhile, the SEC’s civil case also encountered procedural challenges, particularly regarding the service of summonses on defendants based in India, with reports suggesting Indian authorities were reluctant to cooperate at certain stages. (Gautam Adani fraud case)
Sources cited by Bloomberg indicated that while the DOJ can effectively abandon charges against non-resident defendants without a full trial, the SEC settlement would likely conclude the civil proceedings through monetary penalties without any formal admission of guilt.
If finalized, the resolution would represent a major legal and reputational victory for Gautam Adani and the Adani Group. It could also restore confidence among international investors in India’s infrastructure and renewable energy sectors, potentially paving the way for the conglomerate’s return to global capital markets and renewed expansion plans.
People familiar with the matter told Bloomberg News that the US Department of Justice (DOJ) may announce the withdrawal of criminal charges as early as this week. At the same time, the US Securities and Exchange Commission (SEC) is said to be working towards a settlement in the parallel civil fraud case, which is expected to involve financial penalties.
US authorities further alleged that the accused concealed details of the alleged bribery from American and international investors while raising over USD 3 billion in funds, including investments from the United States. The charges invoked securities fraud, wire fraud, and provisions under the Foreign Corrupt Practices Act (FCPA). The Adani Group has repeatedly denied all allegations, calling them “baseless” and asserting that it would pursue every available legal remedy. Since all the accused remain in India and did not appear before US courts, extradition complications under the India-US treaty also slowed the legal process.
The latest development comes weeks after a US federal judge approved a request by the defendants for a pre-motion conference, allowing them to move forward with efforts to dismiss the SEC’s securities fraud lawsuit. In their filing, the Adani side argued that the matter concerns Indian citizens, an Indian company, and securities neither listed nor traded in the United States, making the SEC’s action an improper extraterritorial application of American law. (Gautam Adani fraud case)
The plea also maintained that there was no evidence linking Gautam Adani personally to drafting, reviewing, or approving any alleged misleading statements, nor any indication that he knew of them. According to the filing, because the SEC could not directly prosecute the Adanis under the FCPA, regulators instead framed the case as one involving securities fraud. The defense further argued that the SEC failed to establish any qualifying transaction within the United States, which is necessary for applying US securities laws.
The criminal proceedings had largely remained inactive since late 2024, with little movement on the docket. Meanwhile, the SEC’s civil case also encountered procedural challenges, particularly regarding the service of summonses on defendants based in India, with reports suggesting Indian authorities were reluctant to cooperate at certain stages. (Gautam Adani fraud case)
Sources cited by Bloomberg indicated that while the DOJ can effectively abandon charges against non-resident defendants without a full trial, the SEC settlement would likely conclude the civil proceedings through monetary penalties without any formal admission of guilt.
If finalized, the resolution would represent a major legal and reputational victory for Gautam Adani and the Adani Group. It could also restore confidence among international investors in India’s infrastructure and renewable energy sectors, potentially paving the way for the conglomerate’s return to global capital markets and renewed expansion plans.