The US Department of Justice (DoJ) has permanently dropped all criminal charges against billionaire Gautam Adani and his nephew Sagar Adani in an alleged securities and wire fraud case, with the Eastern District of New York ordering the indictment dismissed with prejudice on 18 May. The move closes one of the most high-profile US legal actions ever brought against an Indian business figure.

What the DoJ Said

In its filing before the federal court, the Justice Department cited prosecutorial discretion as the basis for withdrawal. “The Department of Justice has reviewed this case and has decided, in its prosecutorial discretion, not to devote further resources to these criminal charges against individual defendants,” the department stated. A dismissal ‘with prejudice’ means the charges cannot be refiled on the same facts.

Defence Arguments That Shaped the Outcome

Counsel for Gautam Adani and Sagar Adani had argued in court that no credible evidence supported the alleged bribery scheme. The defence further contended that the US Securities and Exchange Commission (SEC) lacked the necessary jurisdiction over both men, and that the alleged misstatements underpinning the case were not legally actionable. The Adani Group had consistently denied all allegations, noting that none of its entities or executives had been charged under the US Foreign Corrupt Practices Act (FCPA), and that Adani Green Energy — the renewable energy arm at the centre of the fundraising allegations — was not formally a party to the proceedings.

Broader Regulatory Settlements

The DoJ dismissal is the latest in a series of closures of US regulatory actions against the conglomerate. The SEC last week settled its civil allegations against Adani. Separately, the US Treasury Department’s Office of Foreign Assets Control (OFAC) announced on Monday that it had reached a $275 million settlement with Adani Enterprises Limited (AEL) over apparent violations of sanctions on Iran. According to the OFAC statement, AEL agreed to pay $275 million to settle potential civil liability after purchasing shipments of liquefied petroleum gas (LPG) from a Dubai-based trader that purportedly supplied Omani and Iraqi gas. OFAC stated that red flags should have alerted AEL that the LPG actually originated from Iran. “From November 2023 to June 2025, AEL purchased shipments of liquified petroleum gas (LPG) from a Dubai-based trader purporting to supply Omani and Iraqi gas. Red flags should have put AEL on notice that the LPG actually originated from Iran. During this time period, AEL caused US financial institutions to process 32 US dollar-denominated payments totalling approximately $192,104,044 for the shipments,” the OFAC statement said.

What This Means for the Adani Group

With the criminal indictment now dismissed and the SEC civil matter settled, several of the major US regulatory and legal proceedings that had clouded the conglomerate since late 2024 have been formally closed. The $275 million OFAC settlement with AEL represents the principal remaining financial liability arising from the US scrutiny. The Adani Group has not commented specifically on next steps following the DoJ dismissal, but the closure is expected to ease pressure on the group’s international fundraising and investor relations. How markets and lenders respond in the coming sessions will be closely watched.