A major legal case against Indian businessman Gautam Adani and his nephew Sagar Adani in the United States has come to an end. The US Department of Justice (DOJ) has dropped all criminal charges against the two of them, and the court has officially permanently closed the case.
The case began when US authorities accused the Adanis of being involved in an alleged bribery scheme linked to solar power projects in India. The prosecution claimed that around USD 265 million in bribes were planned or paid to Indian officials to secure business contracts. The prosecutors also alleged that important information about the project was kept hidden from investors and lenders in the US while raising money.
After months of legal battle, the prosecution was unable to prove the allegations, and in the end, the court decided not to continue the case. In the court filing, the DOJ said that it would not use more government resources to pursue the case and dismissed it with prejudice, which means the same criminal charges cannot be brought again in the future.
Another reason to dismiss the case was the argument made by Adani’s lawyers, who stated that the matter mostly involved Indian people, an Indian company, and business activities that happened in India, not in the US. The lawyers argued that American law should not be applied in this matter.
The legal team from Adani’s side also stated that US investors had not suffered any financial losses. Furthermore, they said Gautam Adani was not directly involved in the bond offering connected to the allegations. As US prosecutors found no clear linkage and related evidence against the Adanis in the case, the court dismissed it in the end.
One thing to note is that Gautam Adani, his nephew Sagar Adani, and Vneet Jaain were charged only under securities fraud and wire fraud laws, not under the more serious bribery charges under the Foreign Corrupt Practices Act, which were filed against some other accused in the wider case.
Before the criminal case was fully closed, the US Securities and Exchange Commission (SEC) had also settled another separate civil case related to investor disclosures, without the Adanis admitting any wrongdoing.
During the court hearings and throughout the accusations by the US prosecution, the Adani Group consistently denied all allegations and called them baseless.
Also Read: Adani Puts Workers at Centre of Growth Push, Unveils Local Jobs and Welfare Blueprint https://www.vibesofindia.com/adani-says-future-growth-will-be-built-by-workers/
