Adani Group companies witnessed significant gains on Tuesday following the closure of multiple US legal proceedings involving key executives. According to reports from The Hindu BusinessLine, shares of Adani Enterprises Ltd rose 1.81% to ₹2,739, while Adani Green Energy Ltd also gained 1.81% to trade at ₹1,393.05. Adani Total Gas climbed 2.28% to ₹623.85, Adani Energy Solutions Ltd advanced 0.62% to ₹1,336.4, and Adani Power rose 0.39% to ₹220.1. Adani Ports and Special Economic Zone Ltd was the only major group company trading in the red, slipping 0.31% to ₹1,781.45.
The rally followed the US Department of Justice's move to permanently withdraw criminal securities and wire fraud charges against Gautam Adani and Sagar Adani in a New York court. As reported by The Hindu BusinessLine, the court subsequently dismissed the indictment 'with prejudice', effectively preventing the case from being reopened. In its filing, the DOJ said it had decided not to devote further prosecutorial resources to the matter after reviewing the case. The legal matters had emerged in late 2024, when US authorities alleged that disclosures tied to renewable energy-related contracts in India were misleading to overseas investors.
The DOJ has formally requested dismissal of criminal charges against Gautam Adani despite allegations he orchestrated a massive corruption scheme tied to solar energy contracts. According to court records filed Monday, prosecutors allege that Adani Green Energy Limited secured a major contract to develop solar power projects in India beginning in 2020, but some Indian state governments allegedly declined to purchase electricity from the project due to high costs. As a result, Gautam Adani and his nephew Sagar Adani allegedly resorted to bribery, including promises of more than $250 million in payments to Indian officials, to secure power purchase agreements for the expensive solar energy. The charges were contingent upon approval by Judge Nicholas Garaufis.
The US Securities and Exchange Commission resolved related civil proceedings linked to disclosures made during a 2021 bond issuance by Adani Green Energy Ltd. According to reports from The Hindu BusinessLine, under the proposed settlement, Gautam Adani agreed to pay $6 million and Sagar Adani $12 million in civil penalties, without admitting or denying the allegations. The settlement comes days after the SEC resolution and addresses the misleading disclosure allegations that had weighed on investor sentiment.
The closure of multiple proceedings is being viewed by investors as a key relief for the infrastructure-to-energy conglomerate, which depends significantly on global debt markets and international investors for long-term project financing. According to The Hindu BusinessLine, the Adani Group had consistently denied wrongdoing and challenged the applicability of US securities laws to transactions and conduct that were largely India-centric. Legal representatives for the Adanis had argued before the US court that the securities involved were not listed on US exchanges and that the alleged acts occurred outside American jurisdiction.
