Adani stocks soar! Shares jump over 3% as US DoJ drops all charges against Gautam Adani

Shares of several Adani companies, including Adani Enterprises, Adani Green Energy, Adani Power, Adani Ports and Special Economic Zone, Adani Energy Solutions and Adani Total Gas, gained over 3 percent in early trade.

According to reports, the US DoJ has permanently dropped all criminal charges against Gautam Adani and Sagar Adani, bringing an end to the closely watched securities and wire fraud case filed in New York.

The dismissal was reportedly filed in the United States District Court for the Eastern District of New York “with prejudice,” meaning the case cannot be reopened in the future.

DOJ says charges cannot be sustained

In its filing, the DOJ stated that after reviewing the matter, it had decided in its prosecutorial discretion not to continue pursuing the criminal charges.

“The Department of Justice has reviewed this case and has decided… not to devote further resources to these criminal charges,” prosecutors said in court filings, effectively ending the indictment.

Civil and regulatory cases already settled

The criminal dismissal comes just days after multiple related enforcement actions reached closure:

• The US Securities and Exchange Commission (SEC) settled civil allegations tied to disclosures in India’s solar energy projects. Gautam Adani agreed to pay USD 6 million and Sagar Adani USD 12 million, without admitting or denying wrongdoing.
• The US Treasury Department’s Office of Foreign Assets Control (OFAC) also settled sanctions-related allegations linked to LPG imports involving Iran, with the Adani Group agreeing to pay USD 275 million while maintaining “extensive cooperation” with investigators.

With the DOJ case now closed, all major US regulatory and criminal proceedings involving the group have effectively concluded.

Allegations behind the case

The now-dismissed case, filed in late 2024, had alleged that the Adanis were involved in a USD 265 million bribery scheme connected to Indian solar power contracts, and that they misled US investors and lenders while raising capital.

However, defence arguments consistently maintained that the matter lacked sufficient US jurisdiction, involved Indian entities and transactions, and did not establish investor losses or actionable misstatements.

Legal pushback and defence strategy

Adani’s legal team, supported by multiple international law firms, argued that US securities laws were being applied extraterritorially and that the allegations were not substantiated by evidence tied to US markets or investors.

They also maintained that Gautam Adani did not authorise the issuance of the bonds at the centre of the case and that all obligations to investors had been honoured.

Court formally closes case

Following the DOJ’s request, the court dismissed the indictment “with prejudice,” marking a final legal closure.

Such dismissals are rare in US criminal proceedings and typically indicate that prosecutors no longer believe the case can be sustained.

What does it mean going forward?

The closure removes a significant legal overhang for the Adani Group at a time when it is expanding globally. However, legal experts note that the case also highlights ongoing scrutiny of cross-border financial enforcement and jurisdictional boundaries in securities law.

For Gautam Adani and Sagar Adani, the ruling marks the end of a multi-agency legal saga in the United States.