Sworn Denial: Adani Says No Deal Behind US Case Dismissal

Gautam Adani, chairman of the Adani Group, has formally denied under oath that any promise, agreement, or deal influenced the United States Department of Justice's decision to drop a criminal indictment against him. The affidavit, filed in the U.S. District Court for the Eastern District of New York, responds to a July 8 order by Judge Nicholas Garaufis, who sought clarity on whether any exchange or understanding was linked to the dismissal.

In the affidavit, Adani stated he was not aware of anything promised, offered, sought, received, agreed to, or accepted by anyone in connection with the dismissal. He also denied knowledge of any agreement involving an exchange of value for dropping the criminal charges. The indictment, filed in 2024 under the Biden administration, accused Adani and seven others of participating in a scheme to pay approximately $250 million in bribes to Indian officials to secure power supply contracts and misleading investors while raising capital in U.S. markets. Adani has consistently denied the allegations.

The Justice Department moved to dismiss the case, citing legal and evidentiary challenges. Prosecutors noted that the alleged conduct was largely centred in India, involved no identified investor losses, and was already under investigation in India. The department also told the court that the indictment appeared to have been unsealed during the final days of the Biden administration as a name-and-shame action, leaving the matter for the succeeding Trump administration.

Addressing speculation about Adani Group's proposed $10 billion investment in the United States, Adani said the plan was publicly announced on November 13, 2024, before the indictment was unsealed. His legal counsel, Sullivan & Cromwell LLP, held meetings with U.S. Department of Justice and Securities and Exchange Commission officials and submitted a white paper, expert reports, and other materials. The counsel indicated that the proposed investment could potentially form part of a resolution if U.S. authorities chose to consider it. However, the DoJ later informed counsel that the investment would not be considered in deciding whether to seek dismissal, and Adani stated that the investment plan played no role in the department's decision.

The affidavit follows a July 4 filing by the DoJ in which prosecutors rejected reports linking the dismissal to investment commitments, calling such claims false. The DoJ has sought dismissal of the criminal proceedings with prejudice, which would bring the case to a final close.

The indictment, announced in November 2024, triggered a sharp sell-off in Adani Group stocks, wiping out nearly Rs 2.85 lakh crore in market capitalisation over four trading sessions, affecting millions of shareholders. The case has drawn significant attention in both India and the United States.