The US Department of Justice (DOJ) is reportedly moving to drop criminal charges against Adani Group Chairman Gautam Adani as early as this week, while the Securities and Exchange Commission (SEC) is separately working toward a civil settlement that could involve a monetary penalty, according to sources familiar with the matter. The development would bring to a close a case that has lingered for more than a year since charges were first filed in November 2024.

State of the Two Cases

The DOJ is expected to effectively move to drop the criminal charges, a step made procedurally possible given that the defendants — Gautam Adani and his nephew Sagar Adani — are outside the United States. The SEC's parallel civil fraud case, however, is likely to conclude with a financial penalty rather than a clean dismissal, sources said.

The original allegations, filed simultaneously by the DOJ and the SEC, claimed the Adanis sought to pay over $250 million in bribes to Indian government officials to secure solar energy contracts, and that they concealed this scheme from US investors and banks when raising funds. The Adani Group has consistently and categorically denied all such allegations.

Adani's Legal Arguments

Counsel for Gautam Adani and Sagar Adani have argued in court that no credible evidence supports the alleged bribery scheme. Their legal team has further contended that the SEC lacks personal jurisdiction over the two individuals, given that neither had sufficient contacts with the US nor direct involvement in the bond offering in question.

Last month, a US federal judge granted Gautam Adani's request to schedule a hearing to dismiss the SEC case, acknowledging the jurisdictional challenge. In filings, the Adani legal team argued the case represents an impermissible extraterritorial application of US law, and that the SEC has failed to establish actionable claims under US securities statutes.

The Bond Sale at the Centre of the SEC Case

The SEC's civil complaint centres on a $750 million bond sale conducted by Adani Green Energy — the Group's renewable energy arm — in 2021. The transaction was executed outside the United States under Rule 144A and Regulation S exemptions, with securities initially sold to non-US underwriters and only partially resold to qualified institutional buyers thereafter.

Adani's lawyers argued that the issuer is an Indian entity, the alleged misconduct occurred entirely in India, and the securities were never listed in the United States — rendering the SEC's reach impermissibly extraterritorial. Notably, the filing also pointed out that no investor losses occurred: the bonds matured and Adani Green Energy repaid all principal and interest in full to investors in 2024.

Adani Group's Position

The Adani Group has maintained that none of its entities or executives has been charged under the US Foreign Corrupt Practices Act (FCPA). It has also clarified that Adani Green Energy — the entity that raised the funds — is not a party to the DOJ criminal proceedings. The Group has framed the allegations as legally deficient and jurisdictionally overreaching.

What Happens Next

A DOJ announcement dropping the criminal charges could come within days, according to sources. Any SEC settlement, by contrast, is expected to take longer to finalise and would likely require agreement on the quantum of the monetary penalty. The resolution, if it materialises as described, would mark a significant turning point for the Adani Group, which has faced sustained pressure on its international fundraising and reputational standing since the charges emerged in late 2024.