Congress leader Rahul Gandhi on Wednesday slammed Prime Minister Narendra Modi after a US federal judge permanently dismissed criminal charges against Adani Group Chairman Gautam Adani and his nephew Sagar Adani, alleging that the decision came at a cost to India's interests.
"There is much more to this than meets the eye," Gandhi said in a post on X, sharing a media report on the US Justice Department's request to dismiss the charges.
"A compromised PM was forced to sell India's interest. India is paying a huge price," he said.
US District Judge Nicholas Garaufis of the Eastern District of New York approved the Justice Department's request to dismiss charges against Gautam Adani, Sagar Adani and former Adani Green Energy CEO Vneet Jaain. The ruling removes a major legal overhang that had hung over the ports-to-energy conglomerate for nearly two years.
In a 47-page order issued on August 10, Garaufis dismissed Counts Two, Three and Four of the indictment, covering securities-fraud conspiracy, wire-fraud conspiracy and securities fraud. The dismissals were with prejudice, meaning the charges cannot be refiled.
The judge, however, reserved judgment on Count One, alleging violations of the Foreign Corrupt Practices Act, and Count Five, alleging conspiracy to obstruct justice. Both counts involve five India-based co-defendants who have not appeared before the US court.
The Justice Department has until August 31 to meet the court's requirements, while lawyers for the non-appearing defendants must confirm their clients' consent by the same date.
Garaufis made clear that the dismissal reflected prosecutorial discretion and did not amount to a finding on the merits of the allegations.
"No one should mistake" the ruling for the court's agreement with the government's decision or an opinion on the merits, Garaufis wrote.
No trial was held, witnesses were examined or evidence tested in court.
The Adani Group has consistently denied the allegations, maintaining that it acted in accordance with applicable laws.
In May, the Justice Department sought dismissal of the charges following an extensive review, citing jurisdictional and evidentiary challenges, the predominantly Indian nature of the alleged conduct, scrutiny by Indian authorities, the absence of identified investor losses and a shift in departmental priorities.
The department also argued that the case, unsealed in the final weeks of the Biden administration, had little realistic prospect of reaching trial and appeared to be a politically motivated "name and shame" exercise.
Adani welcomed the court's decision, saying he accepted it with "humility" and "deep respect" for the judicial process.
