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Gautam Adani Denies Deal in U.S. Criminal Case Dismissal via Sworn Affidavit

Adani Group Chairman Gautam Adani has submitted a sworn affidavit to a United States court, denying the existence of any promise, agreement, or exchange connected to the U.S. Department of Justice’s (DoJ) decision to drop a criminal indictment against him.

What Happened

The affidavit was submitted in the U.S. District Court for the Eastern District of New York following a July 8 directive issued by U.S. District Judge Nicholas Garaufis. The judge directed Gautam Adani to state under oath whether he was aware of any promise, offer, agreement, or benefit tied to the government’s move to seek the dismissal of criminal charges against him.

In the filing, Mr. Adani stated that he was not aware of anything promised, offered, sought, received, agreed to, or accepted by anyone regarding the dismissal. He also denied any knowledge of arrangements involving an exchange of value to drop the indictment.

The criminal charges were originally unsealed in November 2024 under the Joe Biden administration. They accused Mr. Adani and seven others of participating in an alleged scheme to pay approximately $250 million in bribes to Indian officials for power supply contracts and misleading investors while raising capital in U.S. markets. Mr. Adani has consistently denied all allegations.

Addressing discussions around an investment commitment, Mr. Adani clarified that the Adani Group’s plan to invest $10 billion in the United States was publicly announced on November 13, 2024, prior to the unsealing of the indictment. According to the affidavit, legal counsel from Sullivan & Cromwell LLP had engaged with the DoJ and the Securities and Exchange Commission (SEC), submitting expert reports and a white paper. While legal counsel indicated the proposed investment could potentially be part of a resolution if authorities chose to evaluate it, the DoJ later confirmed that the investment would not be considered in dismissal deliberations.

Key Highlights

  • Sworn Denial: Gautam Adani affirmed under oath that no deal, promise, or exchange influenced the U.S. Department of Justice’s motion to dismiss the criminal case.
  • Judicial Directive: U.S. District Judge Nicholas Garaufis ordered the affidavit to confirm that no undisclosed agreements influenced the dismissal request under Rule 48(a).
  • Decision-Maker Statement: Principal Associate Deputy Attorney General R. Trent McCotter stated he was the sole decision-maker behind the dismissal and rejected reports linking the outcome to U.S. investment plans.
  • DoJ Grounds for Dismissal: Prosecutors identified legal and evidentiary hurdles, including that the alleged conduct was largely based in India, involved no identified investor losses, and was already under investigation by Indian authorities.
  • Enforcement Priorities: The DoJ noted that Foreign Corrupt Practices Act charges in this matter did not align with the Donald Trump administration’s enforcement priorities.
  • Market Impact: The initial indictment in November 2024 had resulted in an erosion of nearly Rs 2.85 lakh crore in market capitalisation across Adani Group stocks over four trading sessions.

Why This Matters

The court’s evaluation of the dismissal motion under Rule 48(a) requires judicial satisfaction that the prosecution’s reasons for dropping the indictment are genuine and free from undisclosed side arrangements. The DoJ’s motion seeks a dismissal with prejudice, which would bring a definitive end to the federal criminal proceedings against Mr. Adani and the other defendants.

What to Watch Next

Judge Nicholas Garaufis will review the submitted affidavit alongside filings from the Department of Justice before ruling on whether to grant the government’s motion to dismiss the criminal indictment with prejudice.

Frequently Asked Questions

Why did the U.S. judge request an affidavit from Gautam Adani?

Judge Nicholas Garaufis sought formal clarity under oath to verify that no undisclosed agreements, promises, or exchanges of value were linked to the Department of Justice’s decision to drop the charges.

What reasons did the U.S. Justice Department provide for dropping the charges?

The DoJ cited legal and evidentiary challenges, noting that the conduct occurred mostly in India, involved no documented investor losses, key witnesses and evidence were outside the U.S., and Indian authorities were already investigating the matter. Furthermore, the charges did not align with the current administration’s enforcement focus.

What is the status of the Adani Group’s proposed U.S. investment?

The Adani Group publicly announced a $10 billion U.S. investment plan on November 13, 2024. Both Mr. Adani’s affidavit and DoJ filings state that this investment plan played no role in the decision to seek dismissal of the indictment.

Source: Based on reporting from The Hindu.