The United States is poised to drop criminal fraud charges against Indian billionaire Gautam Adani following his agreement to pay $18 million (£14.2 million) to settle a civil fraud lawsuit with the American securities regulator.
Background on Gautam Adani
Adani, 63, is the chairman of the Adani Group, one of India's largest conglomerates with interests spanning energy, ports, airports, and infrastructure. According to Forbes, his net worth is estimated at $82 billion, placing him among the world's wealthiest individuals. He and his nephew Sagar Adani have agreed to the settlement with the US Securities and Exchange Commission (SEC), which is subject to court approval and does not involve any admission or denial of the allegations.
Justice Department Reversal
The New York Times reported on Thursday that the Justice Department is preparing to drop its criminal fraud charges against Adani, his nephew, and former Adani Green Energy chief executive Vneet Jaain, who had been charged with securities fraud, conspiracy, and wire fraud. This reversal comes after Adani hired a new legal team led by Robert J. Giuffra Jr., one of President Donald Trump's personal lawyers and co-chairman of the prominent firm Sullivan & Cromwell. Giuffra is the same lawyer Trump retained to appeal his criminal conviction in the hush-money payment case.
SEC Allegations and Settlement
The SEC had accused the Adanis in 2024 of paying approximately $265 million in bribes to Indian government officials to secure lucrative solar energy contracts capable of generating close to $2 billion in profits over 20 years. They were also accused of misleading US investors about the company's anti-bribery practices during a bond offering that raised $750 million, including around $175 million from US investors. The settlement bars the Adanis from future violations of key US anti-fraud laws covering investor deception, securities fraud, and market manipulation. The Adani Group has consistently called the allegations baseless.
Legal Strategy and Investment Offer
According to the NYT, Giuffra met last month with Justice Department officials at its Washington headquarters, presenting around 100 slides arguing that prosecutors lacked sufficient evidence and jurisdiction to bring the case. The meeting also included an unusual offer: if prosecutors dropped the charges, Adani would invest $10 billion in the US economy and create 15,000 jobs, repeating a pledge Adani had made to Trump shortly after his 2024 election victory. While prosecutors stated that the investment proposal would 'play no role' in the outcome of the proceedings, sources told The Times the offer received a 'favourable response' from Justice Department officials. Adani Group shares rose on Friday following the news.
Earlier Criminal Indictment
The criminal indictment, announced in November 2024, accused Adani and his associates of orchestrating a bribery scheme to secure contracts for one of India's largest renewable energy projects, while raising more than $3 billion through loans and bond offerings from international investors without disclosing the alleged corruption. At the time the charges were filed, none of the accused were in US custody, and arrest warrants had been secured to be shared with international law enforcement agencies. The Independent has reached out to the Adani Group for comment.
