US judge asks Justice Department to justify dropping criminal charges against Adani
The order came weeks after the Justice Department moved to drop criminal charges against the Adani Group chairman and his nephew Sagar Adani, and six others, marking a pause in what had been one of the highest-profile corporate prosecutions launched under the previous Biden administration.
A US federal judge on Friday declined to immediately dismiss the criminal case against Indian billionaire Gautam Adani, directing the Justice Department to explain in more detail why it wants to abandon the prosecution instead of pursuing the charges.
US District Judge Nicholas Garaufis, who is overseeing the case in Brooklyn, said the Justice Department's brief filing seeking dismissal failed to provide enough information for the court to assess the request, reported news agency Reuters. He ordered prosecutors to submit a fuller explanation by July 13 before he considers whether to formally dismiss the case.
"The Government's terse, bland and conclusory statement affords the court neither a sufficient basis to reach any conclusion, nor the opportunity to conduct any analysis of the Government's request for dismissal," Garaufis wrote, as quoted by Reuters.
The judge did not rule on a request filed earlier this week by Adani's lawyers seeking immediate dismissal of the case.
The case, filed in 2024 during the final months of former President Joe Biden's administration, accused Adani of securities fraud and wire fraud linked to an alleged bribery scheme in India. The Justice Department's move to drop the prosecution marked the latest instance of the Trump administration seeking to end a high-profile white-collar criminal case initiated under Biden.
Adani was charged with allegedly agreeing to pay bribes to Indian government officials so an Adani Group subsidiary could secure approvals for a solar energy project. Prosecutors also alleged that he misled US investors by portraying the company's anti-corruption practices more favourably than they actually were.
The Adani Group has consistently denied all allegations of wrongdoing, and Adani has not appeared before a US court to respond to the charges.
DEFENCE CITES 'LEGAL AND FACTUAL WEAKNESSES'
Robert Giuffra, Adani's lawyer, urged the court to dismiss the case, arguing that the alleged conduct fell outside the reach of US law and that prosecutors would be unable to prove the alleged bribery in India.
In a June 24 letter to the judge, Giuffra said Adani's legal team held several meetings with Justice Department officials and submitted nearly 500 pages of material outlining what it described as flaws in the prosecution.
"The DOJ's decision reflects its careful consideration of the indictment's legal and factual weaknesses," Giuffra wrote.
Earlier this week, Giuffra also argued that there was no reason for the court to delay dismissal given the Justice Department's decision to withdraw the case.
US JUSTICE DEPARTMENT MUST EXPLAIN DECISION
In its May 18 filing, senior Justice Department officials told the court they had decided, "in its prosecutorial discretion", not to devote further government resources to pursuing the criminal case against Adani and his co-defendants.
Garaufis said that explanation was insufficient and directed prosecutors to provide a more detailed justification for their request.
The prosecutors who originally brought the case did not sign the dismissal request. A spokesperson for the Brooklyn US Attorney's Office declined to comment on Friday's order.
Separate proceedings involving Adani have continued despite the criminal case.
The US Securities and Exchange Commission has reached a proposed civil settlement under which Gautam Adani would pay $6 million and his nephew, Sagar Adani, would pay $12 million. The settlement still requires court approval.
In a separate matter, Adani Enterprises has agreed to pay $275 million to the US Treasury Department to resolve allegations involving violations of US sanctions related to Iranian-origin liquefied petroleum gas imports.
A US federal judge on Friday declined to immediately dismiss the criminal case against Indian billionaire Gautam Adani, directing the Justice Department to explain in more detail why it wants to abandon the prosecution instead of pursuing the charges.
US District Judge Nicholas Garaufis, who is overseeing the case in Brooklyn, said the Justice Department's brief filing seeking dismissal failed to provide enough information for the court to assess the request, reported news agency Reuters. He ordered prosecutors to submit a fuller explanation by July 13 before he considers whether to formally dismiss the case.
"The Government's terse, bland and conclusory statement affords the court neither a sufficient basis to reach any conclusion, nor the opportunity to conduct any analysis of the Government's request for dismissal," Garaufis wrote, as quoted by Reuters.
The judge did not rule on a request filed earlier this week by Adani's lawyers seeking immediate dismissal of the case.
The case, filed in 2024 during the final months of former President Joe Biden's administration, accused Adani of securities fraud and wire fraud linked to an alleged bribery scheme in India. The Justice Department's move to drop the prosecution marked the latest instance of the Trump administration seeking to end a high-profile white-collar criminal case initiated under Biden.
Adani was charged with allegedly agreeing to pay bribes to Indian government officials so an Adani Group subsidiary could secure approvals for a solar energy project. Prosecutors also alleged that he misled US investors by portraying the company's anti-corruption practices more favourably than they actually were.
The Adani Group has consistently denied all allegations of wrongdoing, and Adani has not appeared before a US court to respond to the charges.
DEFENCE CITES 'LEGAL AND FACTUAL WEAKNESSES'
Robert Giuffra, Adani's lawyer, urged the court to dismiss the case, arguing that the alleged conduct fell outside the reach of US law and that prosecutors would be unable to prove the alleged bribery in India.
In a June 24 letter to the judge, Giuffra said Adani's legal team held several meetings with Justice Department officials and submitted nearly 500 pages of material outlining what it described as flaws in the prosecution.
"The DOJ's decision reflects its careful consideration of the indictment's legal and factual weaknesses," Giuffra wrote.
Earlier this week, Giuffra also argued that there was no reason for the court to delay dismissal given the Justice Department's decision to withdraw the case.
US JUSTICE DEPARTMENT MUST EXPLAIN DECISION
In its May 18 filing, senior Justice Department officials told the court they had decided, "in its prosecutorial discretion", not to devote further government resources to pursuing the criminal case against Adani and his co-defendants.
Garaufis said that explanation was insufficient and directed prosecutors to provide a more detailed justification for their request.
The prosecutors who originally brought the case did not sign the dismissal request. A spokesperson for the Brooklyn US Attorney's Office declined to comment on Friday's order.
Separate proceedings involving Adani have continued despite the criminal case.
The US Securities and Exchange Commission has reached a proposed civil settlement under which Gautam Adani would pay $6 million and his nephew, Sagar Adani, would pay $12 million. The settlement still requires court approval.
In a separate matter, Adani Enterprises has agreed to pay $275 million to the US Treasury Department to resolve allegations involving violations of US sanctions related to Iranian-origin liquefied petroleum gas imports.
