New Delhi: The US Justice Department is close to dropping criminal fraud charges against billionaire Gautam Adani, according to Reuters. The development
comes after Adani’s lawyer argued that his client could not follow through on a promised $10 billion investment in the US economy while the case was ongoing.
Gautam Adani is also in settlement talks with the Securities and Exchange Commission (SEC) over a related civil fraud lawsuit concerning an alleged scheme to bribe Indian government officials, with any agreement subject to court approval. Under the proposed settlement, Gautam Adani and his nephew Sagar Adani would pay civil penalties of about $18 million. If finalized, the deal could be a major boon to the Adani Group, the multinational conglomerate with interests spanning renewable energy, ports, airports and other infrastructure sectors.
What are the charges against Gautam Adani
In November 2024, federal prosecutors in Brooklyn charged Adani over an alleged scheme in which he agreed to pay about $265 million in bribes to Indian government officials to win approval to develop India’s largest solar power plant. Prosecutors said Adani and his alleged co-conspirators raised more than $3 billion in loans and bonds by hiding their alleged corruption from lenders and investors. The Adani Group has called the allegations “baseless.”
How did the $10 billion investment factor in
Adani’s lawyer Robert Giuffra, who is also a personal attorney of US President Donald Trump, made a presentation to Justice Department officials last month, arguing the case was weak due to lack of proper jurisdiction and insufficient evidence. Giuffra also told officials that Adani could not make the $10 billion investment, which he had publicly promised after Trump’s 2024 election victory along with a pledge to create 15,000 jobs, while the case was proceeding. Some prosecutors made clear the investment would not affect the case, Reuters reported.
