Shares of Adani Enterprises rose by 3.8%, Adani Ports and Special Economic Zone increased by 2.5%, Adani Green Energy advanced by 4%, Adani Energy Solutions climbed by 4.2%, and Adani Power gained 2.3%, all showing positive gains on Friday, 15 May, after news indicated that US authorities might be moving towards addressing fraud allegations against Gautam Adani, which could lead to the dismissal of the associated criminal case.
According to a Reuters report citing people familiar with the matter, the US Justice Department is nearing a decision to dismiss criminal fraud charges against Adani, who has pledged to invest $10 billion in the US economy.
Independently, Adani settled a related civil fraud lawsuit on Thursday, initiated by the US Securities and Exchange Commission, regarding claims of bribing Indian government officials, pending court approval.
According to the report, Adani’s attorney, Robert Giuffra — who also represents Donald Trump as a personal lawyer — argued last month before Justice Department officials that the ongoing litigation could impede Adani’s intended investments in the United States.
After Trump’s anticipated victory in the 2024 election, Adani revealed plans to invest $10 billion in the US and generate approximately 15,000 jobs. Reuters reported that Giuffra focused his presentation to the officials on disputing the jurisdiction and evidentiary foundation of the case.
US Justice Department said to be near dropping Adani Criminal Case
According to a Reuters report, discussions within the US Justice Department over the case involving Gautam Adani reportedly included differing views on whether Adani’s proposed $10 billion investment in the United States should influence the proceedings. While some prosecutors reportedly maintained that the investment should have no bearing on the case, it remained unclear whether others viewed the matter differently.
The report added that the Justice Department has not yet responded to requests for comment, while Bloomberg earlier reported that U.S. authorities were moving closer to dropping the criminal case.
The case dates back to November 2024, when federal prosecutors in Brooklyn accused Adani and others of participating in a bribery scheme involving around $265 million allegedly paid to Indian officials to secure approvals for a large solar power project. Prosecutors had alleged that the accused raised over $3 billion through loans and bond issuances while concealing the alleged misconduct from investors and lenders. The Adani Group has consistently denied the allegations, calling them “baseless.”
Reuters also reported that a related civil fraud case filed by the US Securities and Exchange Commission has now been settled, subject to court approval. As part of the settlement, Gautam Adani and his nephew, Sagar Adani, agreed to pay civil penalties totalling $18 million without admitting or denying wrongdoing.
(more to come)