US Justice Department drops all charges against Adani, case closed permanently

The US Department of Justice has permanently dropped all criminal charges against Gautam Adani and his nephew Sagar Adani in a New York securities and wire fraud case. The case was dismissed with prejudice, and related SEC and OFAC settlements are noted as part of the broader regulatory resolutions.

In a major relief for billionaire industrialist Gautam Adani and the Adani Group, the United States Department of Justice (DOJ) has permanently dropped all criminal charges against him and his nephew Sagar Adani in a high-profile securities and wire fraud case filed in New York.

The move effectively brings the long-running legal battle to a complete close, with the court dismissing the indictment "with prejudice," meaning the case cannot be reopened in the future. According to court filings before the United States District Court for the Eastern District of New York, the DOJ stated that after reviewing the matter, it had decided not to devote further prosecutorial resources to the case.

"The Department of Justice has reviewed this case and has decided, in its prosecutorial discretion, not to devote further resources to these criminal charges against individual defendants," the filing stated. The development marks a dramatic turnaround in a case that had cast uncertainty over the Adani Group’s international business expansion and investor sentiment since late 2024.

The latest decision comes days after the US Securities and Exchange Commission (SEC) settled civil allegations related to investor disclosures concerning solar energy projects in India. As part of the settlement, Gautam Adani agreed to pay USD 6 million, while Sagar Adani agreed to pay USD 12 million, without admitting or denying wrongdoing.

Separately, the US Treasury Department’s Office of Foreign Assets Control (OFAC) also concluded its investigation into allegations related to LPG imports involving Iran sanctions. The Adani Group agreed to pay USD 275 million while cooperating extensively with the investigation and making proactive disclosures, according to reports.

With the DOJ dismissal, multiple regulatory and legal proceedings involving the group in the United States have now been resolved within days.

Allegations Related To Solar Contracts

The SEC and DOJ cases, filed in late 2024, had alleged that the Adanis were involved in a USD 265 million bribery scheme linked to solar power contracts in India. Prosecutors had claimed the alleged arrangement was concealed from American investors and lenders while raising capital.

However, people familiar with the matter said prosecutors were ultimately unable to establish sufficient evidence or clear US jurisdictional links to sustain the allegations. Legal experts had increasingly questioned whether US authorities had overextended securities laws to pursue alleged conduct centred entirely outside the United States.

Adani’s Legal Team Challenged US Jurisdiction

In submissions made public on April 7, 2026, Adani’s legal team strongly challenged the SEC proceedings, arguing that the case represented an "impermissibly extraterritorial application" of US securities laws. The defence maintained that the matter involved Indian entities, Indian defendants and securities not traded on US exchanges, while all alleged conduct occurred exclusively in India.

The filings further argued that the SEC lacked jurisdiction, failed to establish actionable misstatements and could not directly connect Gautam Adani or Sagar Adani to the bond offerings under scrutiny. The defence also highlighted that there were no investor losses and all bond obligations had been honoured.

Charges Were Limited To Fraud Counts

Court records showed that Gautam Adani, Sagar Adani and Vneet Jaain were charged only under securities and wire fraud statutes. They were not named in the more serious Foreign Corrupt Practices Act (FCPA) bribery charges or obstruction-related counts brought against other individuals in the broader case.

The Adani Group had consistently denied all allegations and maintained that its governance and compliance standards remained robust. The dismissal is considered unusual in US criminal proceedings and generally reflects a conclusion by prosecutors that continuing the case is no longer justified after extensive review.