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US Justice Department Digs In Behind Dropping the Gautam Adani Case, Tells Court the Charges Should Never Have Been FiledBusiness
3 hours ago· 4

US Justice Department Digs In Behind Dropping the Gautam Adani Case, Tells Court the Charges Should Never Have Been Filed

The US Justice Department mounted a strong defence in federal court of its decision to drop the criminal case against Gautam Adani and seven others, calling the prosecution legally weak and diplomatically damaging.

Amit PatelAmit PatelBusiness Correspondent 2 min read For AI
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The US Justice Department (DOJ) has made it clear before a federal court that its decision to shut down the criminal case against Indian industrialist Gautam Adani and seven others is entirely justified. The department bluntly told a federal judge that the prosecution rested on shaky legal ground, was diplomatically damaging to ties with India, and clashed with the Trump administration's enforcement priorities.

In a sharply worded 10-page filing, the DOJ argued that the case should have been ended a year ago, or should never have been launched at all. Its position is that once a decision has been taken to drop the charges completely, a court's role in reviewing that call becomes very limited.

The filing came after an order from US District Judge Nicholas Garaufis, who had asked the department to explain why it wanted the indictment dismissed permanently. The judge had described the department's earlier application as brief, dull and lacking any firm conclusion.

What the case was about

Back in 2024, under the Biden administration, the Justice Department levelled serious allegations against Adani and the others. It claimed they were part of a scheme to pay 250 million dollars in bribes to Indian government officials and lied to raise billions of dollars from investors. During this alleged scheme, Adani Green Energy Limited is said to have raised at least 175 million dollars from American investors.

Pressure builds if it is argued out

The Justice Department warned that if prosecutors are forced to publicly justify their decisions to withdraw cases, it would discourage the entire process of dismissing charges in the future. It would also expose the department's confidential internal deliberations and violate the executive's constitutional authority over charging decisions.

Principal Associate Deputy Attorney General R. Trent McCotter wrote in the filing that if a court questions the grounds for withdrawing a case, the department's confidential internal discussions would be laid bare.

A hearing would not serve justice

McCotter added that such a demand also harms the defendants themselves. The reason, he said, is that it could make the department hesitant to move to drop criminal charges it does not consider to be in the interest of justice. He explained that he chose to set aside the confidentiality privilege in this case alone before deciding to withdraw the indictment. That decision, he said, came after months of meetings with defence lawyers, a review of hundreds of pages of documents and his own legal analysis. He also noted that the case involves Indian nationals who were working within India to secure contracts from the Indian government.

What this means for you

  • For investors: The Justice Department sticking to its decision to drop the case is a relief for Adani group shareholders, as it reduces legal uncertainty around the company.
  • Across India: The matter is tied to business and diplomatic ties between India and the US, so it could affect economic confidence between the two countries.

Questions & Answers

What did the US Justice Department tell the court?
It said the case against Adani and seven others was legally weak, diplomatically damaging and should never have been started.
When and under which administration was the case filed?
The case was filed in 2024 by the Justice Department under the Biden administration.
What were Adani and the others accused of?
They were accused of scheming to pay 250 million dollars in bribes to Indian government officials and lying to raise billions of dollars from investors.
How much did Adani Green Energy raise?
During the alleged scheme, Adani Green Energy Limited raised at least 175 million dollars from American investors.
Who is the judge in this case?
US District Judge Nicholas Garaufis is hearing the matter and had asked the department to explain its reasons for dismissal.
On what basis did McCotter decide to withdraw the case?
R. Trent McCotter said the decision came after months of meetings with defence lawyers, a review of hundreds of pages of documents and his own legal analysis.
Amit Patel
About the authorAmit PatelBusiness Correspondent Delhi
ExpertiseBusiness News, Financial Markets, Stock Market Analysis, Corporate Affairs, Startups, Entrepreneurship, Economic Trends, Technology Business, Investments, Global Economy

Amit Patel is a Business Correspondent covering global markets, finance, startups, technology, and economic trends. He delivers timely news, market analysis, and insights into the businesses and industries shaping the modern economy.

Amit Patel is a Business Correspondent covering global markets, finance, entrepreneurship, technology, and economic developments. He reports on breaking business news, corporate strategies, stock market trends, startup ecosystems, and industry innovations that shape the global economy. With a focus on accuracy, clarity, and in-depth analysis, Amit helps readers understand complex business topics and their real-world impact. His coverage spans financial markets, multinational corporations, emerging industries, economic policy, investment trends, and digital transformation. Through data-driven reporting and insightful analysis, Amit delivers timely business news and expert perspectives for professionals, investors, entrepreneurs, and general readers alike.

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#Business#GautamAdani#USJusticeDepartment#AdaniGreenEnergy#BriberyCase#TrumpAdministration#FederalCourt#NicholasGaraufis

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