Federal Court Requires Detailed Explanation for Adani Case Dismissal
In a significant legal development, a United States federal court has declined to immediately approve the Department of Justice’s (DoJ) request to dismiss criminal charges against Gautam Adani, Sagar Adani, and others. This decision arises from the court’s assessment that the government’s rationale for dropping the charges in the alleged $250 million bribery case was inadequate and lacked substantive detail.
Presiding over the case, Judge Nicholas G. Garaufis of the United States District Court for the Eastern District of New York has ordered the DoJ to provide a comprehensive explanation for its motion to dismiss the indictment against all eight defendants. The case is referenced as United States v. Gautam S Adani et al.
Judge Garaufis Demands Transparency Under Rule 48(a)
The court emphasized that under Rule 48(a) of the Federal Rules of Criminal Procedure, the government is required to present a well-founded basis for such a motion. This rule, described by the court as a “sunshine provision,” mandates that prosecutors must disclose adequate reasons supporting the dismissal of an indictment. Judge Garaufis stated that the government’s current explanation was “terse, bland, and conclusory,” thus failing to meet the necessary standards for judicial review.
Judge Garaufis remarked, “The Government’s insufficient statement does not provide the court with a basis to form a conclusion or conduct an analysis of the request for dismissal.” Consequently, the DoJ has been instructed to submit a detailed justification by July 13, 2026.
Background of the Alleged Bribery Case
The charges stem from allegations connected to a 12-gigawatt solar power project. According to the indictment, the Solar Energy Corporation of India required state electricity distribution companies to enter into power supply agreements to ensure the project’s viability. It was alleged that Gautam Adani, Sagar Adani, Vneet Jaain, Ranjit Gupta, and others orchestrated a scheme to bribe Indian state officials to facilitate the project. Allegedly, bribes amounting to ₹2,029 crore (approximately $265 million) were promised, with ₹1,750 crore reportedly allocated to officials in Andhra Pradesh.
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Further allegations included Adani entities raising over $3 billion from U.S. investors, purportedly concealing the bribery scheme. It was also claimed that Adani issued $750 million in senior secured notes in September 2021, with about 25% purchased by U.S.-based investors. The charges encompass securities fraud, wire fraud, conspiracy to violate the Foreign Corrupt Practices Act, and conspiracy to obstruct justice.
Legal Representation and Response
The Adani Group has previously dismissed the allegations as unfounded. The DoJ’s motion to dismiss the charges was submitted by Principal Associate Deputy Attorney General R. Trent McCotter and United States Attorney Joseph Nocella Jr.
Gautam Adani, Sagar Adani, and Vneet Jaain are represented by Sullivan & Cromwell LLP, with co-chair Robert J. Giuffra Jr. and partner James McDonald leading their defense. Notably, Robert Giuffra is also known for representing former U.S. President Donald Trump. Additional legal representation includes Timothy Sini (Nixon Peabody), Andrey Spektor (Norton Rose Fulbright), and Paul Schoeman (HSF Kramer), among others.
