New Delhi: The US Department of Justice has filed to dismiss all criminal charges against billionaire Gautam Adani and his nephew Sagar Adani, with the matter effectively headed toward closure after prosecutors concluded they could not sustain the allegations. The court is expected to order the indictment dismissed with prejudice, which would prevent the case from being reopened.
Separately, Adani Enterprises agreed to pay $275 million to settle allegations related to US sanctions violations tied to Iran-linked LPG shipments. The US Treasury Department’s Office of Foreign Assets Control acknowledged the group’s “extensive cooperation” and proactive disclosures during the investigation, adding that the settlement does not amount to any finding of guilt or wrongdoing and closes all related liabilities. “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 DoJ said in its court filing.
Adani Group shares surge up to 3.5% in early trade
Shares of Adani Group companies rallied sharply on Tuesday following the development. Adani Green Energy surged 3.5% to ₹1,417.70, while Adani Enterprises rose more than 3% to ₹2,774.50 on the NSE. Adani Total Gas gained 3% to ₹628, Adani Power advanced 2.5% to ₹225 and Adani Energy Solutions climbed 2.4% to ₹1,361.10. Shares of Adani Ports and Special Economic Zone, ACC, Ambuja Cements and AWL Agri Business traded largely flat. Investor sentiment also improved after the group settled allegations linked to Iran-related LPG shipments.
How all US cases against Adani were closed
The criminal case closure followed a series of settlements. The US Securities and Exchange Commission settled civil allegations against the two men, with Gautam Adani agreeing to pay $6 million and Sagar Adani $12 million, without admitting or denying wrongdoing. The US Treasury Department’s Office of Foreign Assets Control also settled allegations of the Adani Group violating US sanctions on Iran in LPG imports, with the conglomerate agreeing to pay $275 million.
Why did the DOJ drop the charges
The case turned in Adani’s favour after prosecutors found no clear US linkages and insufficient evidence to sustain the allegations. Adani’s lawyers argued the proceedings were an “impermissibly extraterritorial application” of US securities laws, noting the case involved “Indian defendants, an Indian issuer”, securities not traded on US exchanges and alleged conduct occurring “exclusively in India.” The Adani Group has consistently rejected all allegations as meritless throughout the proceedings.