US authorities have officially dropped criminal fraud charges against Adani Group chairman Gautam Adani, marking the end of a case that has hung over Asia's richest person for over a year. According to Reuters, US authorities are moving to resolve the fraud charges against Indian billionaire Gautam Adani, with the Justice Department potentially announcing that they're dropping the charges as soon as this week. The announcement comes after earlier reports from Bloomberg and The New York Times suggested the US Department of Justice was likely to withdraw criminal charges linked to an alleged bribery scheme involving Indian solar energy contracts. The original case, filed in late 2024, had accused Adani and associates of orchestrating a bribery scheme involving more than $250 million to secure favourable solar power contracts in India while allegedly misleading US investors during fundraising activities.
Adani Group stocks gained significantly on May 15 after reports that the US Department of Justice was likely to withdraw criminal charges linked to an alleged bribery scheme involving Indian solar energy contracts. According to HDFC SKY, Adani Enterprises rose as much as 3% before paring gains, while Adani Green Energy, Adani Ports and Special Economic Zone, and Adani Energy Solutions also traded higher as investors welcomed the possibility of a resolution. However, Adani Power bucked the trend, edging 1% lower. The rally came after Bloomberg and The New York Times reported that the US Justice Department may drop criminal charges against Gautam Adani as early as this week, with the original case filed in late 2024 accusing Adani and associates of orchestrating a bribery scheme involving more than $250 million to secure favourable solar power contracts in India while allegedly misleading US investors during fundraising activities.
Alongside the criminal case resolution, the US Securities and Exchange Commission has settled a related civil lawsuit against Adani, subject to court approval. Under the SEC settlement, Gautam Adani and his nephew Sagar Adani agreed to pay a combined $18 million in civil penalties without admitting wrongdoing. The allegations stemmed from a 2024 indictment accusing Adani and associates of involvement in a $265 million bribery scheme tied to Indian solar power contracts, as reported by Investing.com. The settlement represents a significant development as it removes the civil component of the legal proceedings that had been hanging over the conglomerate.
The potential closure is being viewed by investors as a major positive for the conglomerate, which has spent the last two years rebuilding investor confidence after facing allegations from US-based short seller Hindenburg Research in 2023 and subsequent regulatory scrutiny. As reported by HDFC SKY, ending of legal uncertainty could improve the group's access to international capital markets and support ongoing expansion plans across infrastructure, ports, airports, energy and green hydrogen businesses. Adani Group companies had shown resilience in recent quarters despite heightened scrutiny, aided by strong operational performance, debt reduction efforts and continued backing from global investors. However, volatility in Adani stocks could persist until there is official confirmation from US authorities.
The latest trading session came after significant recent gains, with Adani Enterprises rallying 8% on May 14 and Adani Green Energy being up 3.53% on Thursday and 4.49% on Wednesday, according to TradingView News. Adani Green Energy has gained a total 26% in the past one month, demonstrating strong momentum before Friday's strong performance. The previous session's gains reflected investor optimism following reports of potential legal resolution, though the subsequent mixed trading showed market caution as investors processed the complex legal developments and their implications for the group's future prospects.
