US court drops criminal charges against Gautam Adani, Sagar Adani

A US district court has dismissed criminal charges against Gautam Adani and his nephew Sagar Adani with prejudice, closing the case brought by US prosecutors in November 2024. Judge Nicholas Garaufis of the Eastern District of New York accepted the government's motion under Section 48A, meaning the charges cannot be refiled in the US. Senior advocates Mahesh Jethmalani and Vikas Singh described the decision as expected and categorical, with Jethmalani calling the original case a 'witch hunt.'

The Adani Group welcomed the ruling. In a post on X, Gautam Adani said the outcome affirmed 'truth, fairness and the rule of law' and reaffirmed his commitment to nation-building. The criminal case had alleged a conspiracy to pay $250 million in bribes to Indian officials for solar contracts and to mislead investors raising $3 billion in US markets. The group had consistently denied the allegations.

Brokerage Bernstein said the dismissal removes a major overhang on Adani stocks, which had fallen sharply after a January 2023 Hindenburg report. It noted that foreign funds had stayed away pending US clarity and that most Adani stocks remain under-owned despite strong operational execution. Bernstein added that promoter share pledges have declined sharply and that access to dollar funding is expected to improve.