The United States Department of Justice (DOJ) has strongly defended its decision to permanently drop all criminal charges against Indian billionaire Gautam Adani and seven others. In a sharply worded 10-page federal court filing, the DOJ stated the prosecution was legally flawed, diplomatically counterproductive, and inconsistent with current enforcement priorities, arguing the case “should have been dropped a year ago.”
The filing was submitted by Principal Associate Deputy Attorney General R. Trent McCotter after U.S. District Judge Nicholas Garaufis demanded an explanation for the permanent dismissal, criticizing the government’s initial motion as “terse, bland, and conclusory.”
The 6 Reasons for Dismissal
The DOJ outlined six overarching reasons why the indictment—originally brought in 2024 under the Biden administration over an alleged $250 million bribery and securities fraud scheme—was completely dropped:
-
Foreign Jurisdiction: The alleged conduct was overwhelmingly centered in India, making it a foreign matter.
-
Indian Clearance: Indian authorities thoroughly investigated the allegations and found no actionable misconduct.
-
No Financial Losses: Investors suffered no financial harm; the notes in question have either been fully repaid or continue to be serviced.
-
Logistical Hurdles: Key evidence and witnesses are located entirely abroad.
-
Extradition Unlikely: The defendants were highly unlikely to ever appear before a U.S. court.
-
Evidentiary Weakness: The prosecution faced significant legal and evidentiary hurdles.
“The United States pretending to be the world police can cause diplomatic strife and also wastes resources better spent on domestic concerns,” McCotter wrote in the filing. “India can better manage its internal systems than can prosecutors in Brooklyn and Washington.”
Lack of Legal Basis and Policy Misalignment
The DOJ argued that the criminal securities fraud charges against Gautam Adani, Sagar Adani, and Cyril Cabanes completely lacked a sound legal basis. Because the activity occurred almost entirely outside the U.S., it failed to meet domestic jurisdictional requirements. Furthermore, the DOJ dismissed the statements cited in the original indictment as corporate “platitudes” and “puffery” rather than criminal fraud, noting that at most, the matter warranted civil rather than criminal resolution.
Additionally, the Foreign Corrupt Practices Act (FCPA) charges no longer aligned with Trump administration enforcement guidelines. Under a June 2025 memorandum issued by Deputy Attorney General Todd Blanche, prosecutors are directed to focus strictly on cases involving:
-
U.S. national security
-
Transnational criminal organizations
-
Egregious misconduct or direct harm to U.S. companies
The DOJ noted that the Adani case met none of these criteria and, under the “Blanche Memorandum,” should have been dismissed a year prior.
Rejection of “Quid Pro Quo” Rumors
The department firmly rejected media speculation suggesting the case was dropped in exchange for promises of U.S. investments by the Adani Group. McCotter labeled these claims entirely “false,” emphasizing that his legal analysis and the decision to seek dismissal would have been identical regardless of any mention of potential investments.
The DOJ has urged the judge to promptly dismiss the case to end the prolonged uncertainty for the defendants.
