US District Judge Nicholas Garaufis in Brooklyn, New York, has directed Gautam Adani to file sworn responses by July 15 on whether any promises or deals were linked to the Justice Department's move to dismiss the criminal indictment. In a brief order late Wednesday, the judge wrote '1. Are you aware of anything promised, offered, sought, received, agreed to, or accepted, by anyone, in connection with the dismissal of the indictment?' and '2. Are you aware of any agreement exchanging anything for the dismissal of the indictment?' According to Business Standard, Robert Giuffra Jr., a lawyer for Adani, declined to comment when approached for response. Giuffra has previously urged dismissal of the case, saying it has 'legal and factual weaknesses.'
The US Department of Justice has moved to dismiss its securities charges against the Adani Group, issuing a scathing self-critique of the original prosecution in a newly unsealed filing. According to the latest filing, the DOJ blasted the initial indictment as an apparent 'name-and-shame' exercise burdened by 'numerous catastrophic flaws' and lacking any realistic prospect of trial. The Department stated bluntly that the charges 'should never have been brought in the first place or should have been dropped a year ago', with the decision to drop the case 'not a close call'. The DOJ noted that the indictment was unsealed in the final days of the prior administration, essentially leaving a 'potential quagmire' for the incoming administration to clean up. Prosecutors cited 'extraordinary proof problems' that would have severely undermined their case in court, admitting that proceeding to trial would have resulted in a 'likely loss on the merits'. The filing also emphasized that authorities in India had investigated the allegations and found 'no actionable misconduct'.
Judge Nicholas Garaufis in June demanded further information, saying the Trump administration had failed to explain why dismissal was justified. In response, Principal Associate Deputy Attorney General R. Trent McCotter argued in a July 4 filing that the case was a foreign matter that would have presented 'extraordinary proof problems' and that 'not a single penny has ever been lost on the securities at issue.' McCotter also said the decision to move to drop the case was entirely based on a review of the merits of the matter and that a pledge by Adani to invest in the US did not play a role in the decision. The billionaire had publicly said he planned to invest $10 billion just after Americans elected Trump as president in late 2024. Among more than 100 slides that Adani's legal team used to argue against the criminal case this year was one that referenced the $10 billion pledge, as reported by Bloomberg.
The DOJ cited six overarching reasons for dropping all charges, according to the filing reported by Business Standard. These included that the alleged conduct was overwhelmingly centred in India, Indian authorities had investigated the allegations and found no actionable misconduct, investors suffered no financial losses, key evidence and witnesses were located abroad, the defendants were unlikely to ever appear before a US court, and the prosecution faced significant evidentiary hurdles. Principal Associate Deputy Attorney General R Trent McCotter wrote that the decision to seek dismissal was not a close call after months of meetings with defence lawyers and reviewing hundreds of pages of submissions. The filing also links the decision to current enforcement priorities within the Justice Department, noting that the alleged conduct did not involve US national security, organised crime, harm to US companies or other factors identified in a June 2025 memorandum issued by Deputy Attorney General Todd Blanche. McCotter specifically rejected media reports suggesting the DOJ sought dismissal in exchange for promises of US investment by the Adani Group, calling such claims 'false'.
Market participants said the development could help remove a long-standing legal overhang for the Adani Group. Vijay Chopra, managing director and chief executive of Enoch Ventures, said investors could become 'quite open to invest' if the uncertainty surrounding the case fades, while Fort Capital's Parag Thakkar said the DOJ had taken a 'firm stance in favor of Adani Group.' The final decision now rests with Judge Nicholas Garaufis, who will consider the detailed explanation submitted by prosecutors. Market expert Sudeep Bandopadhyay noted that 'the market has moved much beyond these allegations' and pointed to the strong response to Adani Enterprises' recent qualified institutional placement as an indication of investor confidence. The filing could reinforce positive sentiment, with legal experts broadly agreeing that the DOJ's unusually forceful defence of dismissal has made the path toward ending the case significantly clearer.
