NEW DELHI — A fresh political storm has erupted in the nation's capital after Leader of the Opposition in the Lok Sabha, Rahul Gandhi, launched a scathing attack on Prime Minister Narendra Modi following a US federal court's decision to drop criminal fraud charges against industrialist Gautam Adani.
Taking to social media platform X, the senior Congress leader posted a screenshot of media coverage detailing the US court's order approving the Justice Department's request to dismiss charges against Adani Group Chairman Gautam Adani and his nephew Sagar Adani.
"There is much more to this than meets the eye," Gandhi wrote. "A compromised PM was forced to sell India's interest. India is paying a huge price."
US Court Grants Permanent Dismissal
The political escalation comes two days after US District Judge Nicholas Garaufis of the Eastern District of New York granted a motion filed by the United States Department of Justice to permanently dismiss major criminal charges against Gautam Adani, Sagar Adani, and former Adani Green Energy executive Vneet Jaain.
In a 47-page order issued on August 10, the court dismissed Counts Two, Three, and Four of the indictment—which included allegations of securities fraud conspiracy, wire fraud conspiracy, and securities fraud—with prejudice. The designation prevents the federal government from re-filing these specific charges in the future.
The ruling effectively terminates a high-stakes legal shadow that had loomed over the conglomerate for nearly two years.
Reacting to the judgment, Gautam Adani welcomed the court's decision, expressing "humility and deep respect" for the judicial process.
"Throughout this challenging period, our faith in truth, fairness, and the rule of law remained unwavering," Adani stated in a message shared on X. "My deepest gratitude to those who never lost faith in us, in the system, and in India's capacity for justice. We will continue doing what matters: building for our nation."
Procedural Details and Remaining Counts
Despite dismissing the core securities and wire fraud charges against top Adani executives, Judge Garaufis reserved judgment on Count One (alleged violations of the Foreign Corrupt Practices Act) and Count Five (conspiracy to obstruct justice). These counts primarily pertain to five non-appearing co-defendants based in India.
The court has directed the US Justice Department and legal representatives for the non-appearing defendants to fulfill procedural requirements by August 31.
Judge Garaufis emphasized in his ruling that the dismissal was an exercise of prosecutorial discretion by the executive branch rather than a judicial declaration of innocence or a ruling on the substantive merits of the allegations.
Reasons Behind the US Justice Department’s Reversal
The Department of Justice had formally requested the dismissal earlier in May following an internal review. Federal prosecutors cited multiple factors for withdrawing the prosecution, including severe jurisdictional hurdles, evidentiary constraints, the predominantly Indian locus of the alleged conduct, ongoing scrutiny by Indian regulatory bodies, and the absence of identified financial losses to US investors.
Furthermore, the Department noted that pursuing the indictment—which was initially unsealed during the closing weeks of the Biden administration—no longer aligned with federal enforcement priorities, characterizing the original case as having limited trial viability and elements of a politically motivated exercise.
While the Adani Group has maintained its innocence throughout the proceedings, asserting full compliance with applicable laws, the political debate in India remains intense as opposition parties continue to demand parliamentary scrutiny over the government's ties with major corporate entities.
