US prosecutors have requested a judge to dismiss criminal fraud and conspiracy charges against Indian billionaire Gautam Adani, who was accused of defrauding investors in a major solar energy project in India. Adani, one of the world's wealthiest individuals, faced allegations in 2024 of paying substantial bribes to secure the project's success. He was charged with conspiracy, securities fraud, and wire fraud related to a lucrative agreement for Adani Green Energy Ltd. and another firm to supply 12 gigawatts of solar power to the Indian government, intended to illuminate millions of homes and businesses.
The Adani Group previously denied the allegations, labeling them baseless. In a court filing, prosecutors stated, "The Department of Justice has reviewed this case and has decided, in its prosecutorial discretion, not to devote further resources to these criminal charges against individual defendants." Judge Nicholas Garaufis must still approve the request, and lawyers for Adani and his co-defendants have consented, according to prosecutors.
Context and Background
Adani was never arrested in the case or extradited to the US for trial. Many in India anticipated the case would be shelved after President Donald Trump suspended enforcement of the Foreign Corrupt Practices Act last year, a US law that prohibits overseas business bribes. The move to drop charges follows a related lawsuit settlement by the US Securities and Exchange Commission against Adani.
Adani's Business Empire
Adani built his fortune in the coal business during the 1990s and later diversified the Adani Group into renewable energy, defense, and agriculture. The company developed a clean energy portfolio including one of the world's largest solar power plants and set a goal to become India's leading player in the sector by 2030. Adani maintained close ties with the Indian government and Prime Minister Narendra Modi.
However, the company faced criticism. Short-seller Hindenburg Research accused Adani of "brazen stock manipulation" and "accounting fraud," claims the Adani Group dismissed as "a malicious combination of selective misinformation and stale, baseless and discredited allegations."
Allegations and Impact
When charges were filed in 2024, US prosecutors in New York alleged that Adani and others presented a rosy picture to Wall Street investors to secure billions of dollars for the solar project over five years while offering $265 million in bribes to Indian government officials for lucrative contracts. Following the case announcement, Kenya's president canceled multimillion-dollar airport expansion and energy deals with Adani. Adani Green Energy withdrew wind energy projects from Sri Lanka after price renegotiations, and a French oil giant paused new investments.
Analysts note that Adani's rapid rise has been fueled by aligning his group's priorities with those of the Modi government. Critics accuse him of crony capitalism and receiving preferential treatment in contract awards, allegations the group denies.
