Adani Group stocks- Adani Enterprises, Adani Power, Adani Green Energy and Others--traded higher in early trade despite weak sentiment in the domestic market after a US court dismissed the criminal charges against Adani Group chairman Gautam Adani and his nephew.
This brings an end to nearly two years of proceedings in an alleged fraud and bribery case.
Last seen, Adani Enterprises shares were trading at Rs 3,019.90, up 0.33 per cent. It opened sharply higher at 3,062 per share as compared to the last day's closing of Rs 3,010 on the NSE. At the same time, Adani Power and Adani Green Energy were trading slightly higher. Adani Ports shares were up nearly a per cent.
US Court Dismisses Charges
Criminal charges involving alleged fraud and bribery against Adani Group Chairman Gautam Adani and his nephew have been dismissed with prejudice by a US court, concluding nearly two years of legal actions.
The indictment against Gautam Adani, Sagar Adani, and Vneet Jaain, the former CEO of Adani Green, was dismissed by the US District Court for the Eastern District of New York following a Rule 48(a) motion from the Justice Department.
The specific charges included conspiracies related to wire fraud and securities fraud, as well as substantive securities fraud.
After requesting further clarification from prosecutors regarding the withdrawal of the case, Judge Nicholas Garaufis approved the motion. This "dismissal with prejudice" ensures the case is permanently closed and cannot be reopened, though it does not constitute a ruling on the validity of the original claims.
The legal battle began in November 2024 when US officials accused Gautam Adani and his associates of plotting to pay $250 million in bribes to Indian officials. The goal was allegedly to obtain solar energy contracts expected to yield over $2 billion in profits over 20 years.
Additionally, prosecutors claimed that the group deceived investors while securing over $3 billion through US-based bonds and loans.
Throughout the proceedings, the Adani Group denied all wrongdoing, calling the claims unfounded and insisting they complied with all relevant laws and regulations.
The SEC’s civil suit was also settled, with Gautam Adani agreeing to a final judgment without admitting to the allegations. As part of the agreement, he is required to pay a $6 million fine to the SEC within a month.
The US Position
The Trump administration argued that pursuing the case was no longer in the public interest, pointing to jurisdictional hurdles, weak evidence, and the fact that the conduct was centred in India and had already been reviewed by Indian authorities. They also noted a lack of proven losses for investors.
The Department of Justice further claimed that the 2024 indictment, issued just before the Biden administration left office, was unlikely to succeed at trial and seemed to be a politically driven attempt by the previous administration to damage the group's reputation.