A US FEDERAL JUDGE has refused to immediately approve the Donald Trump administration's request to dismiss the criminal indictment against billionaire Gautam Adani and seven other accused, saying that the Department of Justice (DOJ) has failed to properly explain why it wants to abandon one of its biggest foreign bribery cases.
Judge Nicholas Garaufis has directed federal prosecutors to submit a detailed explanation backed by facts before the court considers dismissing the criminal case against Gautam Adani, his nephew Sagar Adani, Adani Green Energy CEO Vneet Jaain and five other defendants.
The order, released on Friday, June 26, 2026, came weeks after the DOJ unexpectedly moved to drop the case with prejudice a month ago on May 18, 2026, effectively preventing the charges from being brought again. However, at the time the government had only said it had decided, "in its prosecutorial discretion," that it would no longer devote resources to pursuing the criminal case.
As per the court records, US Federal Judge Nicholas Garaufis wrote, "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."
He further observed that the DOJ had "failed to meet its obligation to supply adequate reasoning and sufficient facts" to justify abandoning the prosecution. Without those details, he said, the court itself risked "abusing its discretion" if it simply approved the government's request.
The judge has now given prosecutors a deadline of July 13 to file "each reason" behind the request to dismiss the indictment along with "sufficient factual support for each basis" before the court decides whether the criminal charges should formally be dropped.
Judge Garaufis also noted that under US Rule 48(a) of the Federal Rules of Criminal Procedure, prosecutors cannot unilaterally withdraw criminal charges. Instead, any dismissal requires the approval of the court.
Describing Rule 48(a) as a "sunshine provision", the judge said prosecutors are required to provide sufficient reasons and supporting facts whenever they seek to dismiss an indictment. Without that information the court cannot independently judge whether the request is appropriate
Judge Garaufis also acknowledged receiving a 15-page letter filed on June 24 by Adani's legal team supporting the DOJ's request to dismiss the indictment.
However, while acknowledging the defence's arguments, Judge Garaufis made it clear that it remains the government's responsibility—not the defendants'—to justify why the criminal prosecution should be abandoned. "It is the Government's obligation to come forward and to provide its rationale for dismissal, including sufficient factual information underlying the Government's decision to abandon the case," the judge wrote.
Earlier, The Wire had reported that Adani's legal team submitted nearly 500 pages of legal arguments, factual material and expert opinions to the DOJ between February and April this year. One of the experts opinion presented in these documents was an unnamed former Chief Justice of India. Other submissions included opinions from a Harvard Law School securities law professor, a former chairman and acting chairman of the US Securities and Exchange Commission (SEC), and a former Chairperson of India's Central Electricity Authority.
According to the defence filing, the submissions highlighted four major flaws in the indictment. The lawyers argued that: (1) US securities laws did not apply because the transactions were largely foreign, (2) the statements cited by prosecutors were not legally actionable, (3) there was insufficient evidence connecting the accused to the alleged misstatements, and (4) prosecutors would be unable to prove the alleged bribery scheme.
The criminal case is one of two parallel proceedings initiated by US authorities in November 2024, under the Biden government.
The DOJ had charged Gautam Adani, Sagar Adani, and others with offences including securities fraud conspiracy, wire fraud conspiracy and conspiracy to violate the US Foreign Corrupt Practices Act over an alleged $250 million bribery scheme linked to electricity supply contracts with Indian government. Separately, the US Securities and Exchange Commission (SEC) sued Gautam Adani and Sagar Adani, alleging they misled investors during a 2021 bond offering.
Just four days before the DOJ sought dismissal of the criminal case in May 2026, the SEC announced a proposed settlement under which Gautam Adani agreed to pay a $6 million civil penalty and Sagar Adani $12 million, while neither admitting to any alleged wrongdoing.
The proposed settlement would also permanently bar both from future violations of specified US securities laws. However, that agreement too still requires Judge Garaufis's approval before it becomes effective.
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