Adani Group agrees to $18m settlement in US civil fraud case
The US Securities and Exchange Commission’s civil action, which accused the pair of bribery and misleading investors, concludes with a settlement subject to court approval.
Indian billionaire Gautam Adani and his nephew Sagar Adani have agreed to pay a combined $18m in penalties to resolve a civil fraud lawsuit brought by the US Securities and Exchange Commission. The settlement, which is subject to court approval, involves no admission or denial of guilt. The proposed agreement also bars the Adanis from future violations of US anti-fraud laws covering investor deception, securities fraud, and market manipulation.
The regulator’s 2024 lawsuit accused the pair of paying bribes to Indian officials to secure high-profile renewable energy projects. It further alleged that they misled US investors regarding anti-bribery compliance during a bond offering that raised $750m, including approximately $175m from US investors. The Adani Group has previously described the allegations as baseless.
In a separate development, reports from the New York Times, Reuters, and Bloomberg indicate that the US Department of Justice is moving to drop criminal fraud charges against Gautam Adani. This potential dismissal follows intervention by a new legal team led by Robert J Giuffra Jr, a prominent US lawyer who previously advised President Donald Trump.
According to reporting, Giuffra met with justice department officials to present concerns about the case. He reportedly highlighted Adani’s pledge to invest $10bn in the United States and create 15,000 jobs if prosecutors withdrew the charges, a commitment Adani made to President Trump following the 2024 election.
Sources told the New York Times that the decision to drop criminal charges reflects a broader policy shift away from prosecuting foreign bribery cases under the current administration. The BBC has not yet received a response from the US Department of Justice or the Adani Group regarding these developments.
