US dismisses Adani fraud charges following $10 billion investment pledge
The Trump administration has moved to drop criminal fraud charges against Gautam Adani and settled sanctions violations, clearing the way for a $10 billion US investment that his legal team had stalled due to ongoing litigation.
The Trump administration has moved to dismiss criminal fraud charges against Indian billionaire Gautam Adani and settled alleged Iran sanctions violations involving his company, Adani Enterprises, according to court records filed on Monday, 18 May. The resolution of outstanding legal matters against one of the world’s richest individuals comes shortly after Adani’s legal team indicated that the $10 billion investment pledge in the United States could not proceed while the cases remained active.
Adani’s attorney, who also serves as a personal lawyer for President Donald Trump, stated last month that the Indian billionaire was unable to move forward with the substantial capital commitment while the litigation was ongoing. This development marks the latest instance of the Justice Department abandoning a high-profile case initiated under the previous Democratic administration of Joe Biden. The Adani Group, founded and chaired by Adani, has consistently denied any wrongdoing regarding the allegations.
Under the terms of the settlement with the US Treasury Department, Adani Enterprises agreed to pay $275 million to resolve allegations of purchasing liquefied petroleum gas shipments that originated from Iran. The company had acquired the gas from a Dubai-based trader who purported to supply shipments from Oman and Iraq. The payment resolves the sanctions violations without admitting guilt, allowing the company to regularise its operations.
Separately, the US Securities and Exchange Commission settled a civil lawsuit against Adani regarding an alleged bribery scheme in India, pending final court approval. The civil action stemmed from accusations that Adani agreed to pay $265 million in bribes to Indian government officials to secure approval for India’s largest solar power plant. Prosecutors had previously claimed that Adani and his co-conspirators raised more than $3 billion by concealing this corruption from lenders and investors.
The legal clearances arrive amidst a broader geopolitical shift, with President Trump currently in Beijing for a summit with Chinese President Xi Jinping focusing on trade, artificial intelligence, and tensions involving Iran. Meanwhile, US stock markets have risen as the summit begins, with the Dow Jones Industrial Average gaining 0.8% and Nvidia shares surging more than 2% following approval for chip sales. Adani, a close ally of Indian Prime Minister Narendra Modi, holds an estimated net worth of $82 billion according to Forbes magazine.
