The US Department of Justice has done something extraordinary: it has come into a federal courtroom and told the judge that its former administration was wrong to prosecute. On July 4, 2026, the DOJ filed a sharply worded 10-page brief defending its decision to permanently dismiss the criminal case against Adani Group chairman Gautam Adani and seven others, telling US District Judge Nicholas Garaufis that the prosecution was legally flawed, diplomatically counterproductive, and inconsistent with the Trump administration’s enforcement priorities.
The filing came after Judge Garaufis asked the department to explain why it was seeking to permanently dismiss the indictment, criticising the DOJ’s earlier dismissal motion as “terse, bland, and conclusory.” The department’s response was anything but bland. “The defendants have been held in limbo on charges that should have been dropped a year ago or never brought in the first place,” wrote DOJ attorney McCotter in the filing.
“‘Adani case should never have been brought’: US Justice Department urges judge to permanently drop charges. The DOJ called the prosecution ‘legally flawed,diplomatically counterproductive’ and inconsistent with Trump administration priorities.”~Business Today
Jurisdiction, Policy, Diplomacy, And Investor Losses:
The DOJ laid out a comprehensive set of arguments against allowing the prosecution to continue. On the securities fraud charges specifically targeting Gautam Adani, Sagar Adani, and Cyril Cabanes, the filing argued that the alleged misconduct occurred almost entirely outside the United States and did not satisfy the jurisdictional requirements necessary to prosecute criminal securities fraud in US courts.
The department also questioned whether the statements cited in the indictment constituted criminal fraud at all, describing them as largely corporate “platitudes” and “puffery” that sophisticated institutional investors were unlikely to have relied upon. It further noted that investors had not suffered losses because the notes in question had either been fully repaid or continued to be serviced. “The securities charges should never have been brought,” McCotter wrote, adding that at most the allegations warranted civil, rather than criminal, resolution.
The DOJ stated the Foreign Corrupt Practices Act charges, which involved claims of a $250 million conspiracy to pay Indian government officials, were no longer in line with current policy. The FCPA charges should have been dismissed a year ago under Deputy Attorney General Todd Blanche’s June 2025 memorandum, which directed prosecutors to avoid cases like this. “The alleged conduct did not involve criminal organisations, did not have any effect on US companies, did not in any way implicate national security, was not egregious, and has been the subject of investigations in India,” the document stated.
“US DoJ says Adani case should never have been brought, urges judge to drop charges permanently. DOJ says FCPA charges should have been dismissed a year ago; securities fraud charges lacked US jurisdictional basis.”~PTI News
DOJ Rejects Claims Of A Quid Pro Quo With Adani Investment Promises:
One of the most pointed sections of the filing addressed circulating media reports claiming that the DOJ sought dismissal in exchange for promises of US investment from the Adani Group, raising questions about whether political or commercial considerations influenced the legal decision.
McCotter directly and forcefully rejected that characterisation. “I would have sought dismissal of the securities charges regardless of any mentions of investments,” he wrote. “The mention of potential investments could not have played any role.” The filing described such claims as “false” and insisted the department’s decision rested entirely on the legal and policy grounds outlined in the brief.
The original indictment was filed in November 2024 under the Biden administration. The case alleged that Adani and co-accused individuals participated in a scheme to bribe Indian state electricity officials to secure solar energy supply contracts at above-market rates, and then concealed this conduct from US investors when raising capital in American markets. Adani Green Energy Ltd allegedly raised at least $175 million from US investors during the period in question.
“US DoJ says Adani case should never have been brought, urges judge to drop charges permanently. DOJ rejects claims that dismissal was linked to Adani’s promises of US investment, calling such suggestions ‘false’.”~NDTV Profit
What Comes Next? Judge Garaufis Still Has Final Authority:
The DOJ’s filing is a strong and unusually candid document but it does not automatically end the case. Judge Garaufis retains the authority to accept or reject the dismissal motion, and his earlier criticism of the department’s initial filing suggests he intends to scrutinise the reasoning carefully before acting.
The department urged the judge to dismiss promptly, arguing that continued judicial scrutiny only prolonged uncertainty for defendants facing charges the government itself no longer believed should proceed. Whether Garaufis accepts that framing or whether he exercises his discretion to question the dismissal further will determine how quickly the legal chapter finally closes for Gautam Adani and his co-accused.
For Adani Group, which saw its market value collapse by nearly $150 billion in the weeks following the November 2024 indictment before slowly recovering, a permanent dismissal with prejudice would draw a definitive legal line under the most damaging external challenge the conglomerate has faced in its history.
