- U.S. judge seeks DOJ explanation for dropping Adani charges.
- Adani faces securities and wire fraud charges.
- Adani Group denies wrongdoing.
A U.S. JUDGE on Friday ordered federal prosecutors to justify their decision to drop criminal charges against Indian billionaire Gautam Adani. The judge deferred ruling on Adani's motion to dismiss the case.
Adani is charged with securities and wire fraud over an alleged bribery scheme. However, Adani Group denied wrongdoing.
District Judge Nicholas Garaufis said U.S. Department of Justice prosecutors had not adequately explained their May 18 decision to drop the case.
"The Government's terse, bland and conclusory statement affords the court neither a sufficient basis to reach any conclusion, nor the opportunity to conduct any analysis of the Government's request for dismissal," Garaufis wrote, giving the Justice Department until July 13 to submit more information, according to Reuters.
Legal experts say judges have little authority to force prosecutors to pursue criminal cases they want to drop, according to Reuters. But the charges remain pending until Garaufis dismisses them.
Robert Giuffra, Adani's lawyer, referred to a letter he sent Garaufis on Wednesday arguing the case should be dismissed because it fell outside U.S. law and prosecutors could not prove the alleged bribery scheme in India.
The case was brought in 2024, at the end of President Joe Biden's term. Dropping the charges was the latest Justice Department move to end a white-collar criminal prosecution during President Donald Trump's second term.
Adani charged in 2024
Adani was charged in 2024 with bribing Indian officials to secure approval for a solar power project and misleading U.S. investors about Adani Group's anti-corruption practices, according to Reuters.
The U.S. Securities and Exchange Commission also sued Adani.
Under a proposed settlement, Adani would pay $6 million and his nephew, Sagar Adani, $12 million, according to Reuters. Adani Enterprises separately agreed to pay $275 million to the U.S. Treasury Department to settle alleged Iran sanctions violations.
In a June 24 letter to Garaufis, Giuffra said Adani's lawyers met several times with Justice Department officials and submitted nearly 500 pages arguing the case was flawed.
IHG Hotels & Resorts plans to expand its partnership with Adani Airport Holdings after signing a five-hotel deal last month. The company said it sees further opportunities across India's airport network.
