US District Judge Nicholas Garaufis on Tuesday threw out the criminal securities-fraud portion of the case against Adani Group chairman Gautam Adani and his son Sagar Adani, sealing those charges with prejudice. The ruling ends almost two years of prosecution on the fraud counts, but it leaves two other allegations—violations of the Foreign Corrupt Practices Act (FCPA) and obstruction of justice—alive pending further government action.

Judge’s Reasoning

Garaufis listed practical obstacles that, in his view, made a trial on the fraud charges untenable:

  • Jurisdictional limits – most of the conduct the indictment described happened in India, not the United States.
  • Evidentiary gaps – the government failed to produce the proof needed for a securities-fraud trial.
  • Indian investigations – Indian authorities had already examined the alleged wrongdoing, reducing the relevance of a U.S. proceeding.
  • No investor loss identified – prosecutors could not point to a specific loss suffered by U.S. investors that would satisfy the fraud element.
  • Low likelihood of trial – the department concluded that even if the case moved forward, the odds of conviction were slim.

Facing those hurdles, the Justice Department moved to withdraw the case after an “extensive review.” The judge accepted the request and dismissed the conspiracy and wire-fraud counts, as well as the underlying securities-fraud charge, with prejudice—meaning the government cannot bring those same accusations again.

What Remains on the Table

The dismissal left two separate counts untouched:

  • Foreign Corrupt Practices Act violation – the FCPA bars U.S. persons and companies from bribing foreign officials. The indictment alleged that Adani Group executives paid roughly $265 million in bribes to Indian officials to secure solar-power contracts.
  • Obstruction of justice – prosecutors claim the defendants interfered with the government’s investigation.

Garaufis deferred rulings on those counts, noting that the government must still meet specific legal prerequisites before it can proceed. Until the Justice Department satisfies those requirements, the FCPA and obstruction allegations remain pending.

Broader Implications

  • Reputational damage – even without a conviction, the lingering accusations keep the group in the spotlight of investors and regulators worldwide.

The civil side of the saga also concluded recently. The U.S. Securities and Exchange Commission secured a permanent injunction against Gautam Adani for specific securities-law violations, though he did not admit any wrongdoing. That settlement shows the Adani Group still faces compliance obligations under U.S. law.

What to Watch

  • Government filings on the FCPA and obstruction counts – the Justice Department must file a supplemental complaint or otherwise clear the procedural hurdles the judge identified.