Judge delays dismissal of Adani charges, demands DOJ explain

A federal judge in Brooklyn refused to immediately dismiss criminal charges against Gautam Adani, ordering the Justice Department to explain why it wants to drop the case. U.S. District Judge Nicholas Garaufis issued the ruling Friday, two days after Adani's lawyers asked the court to formally end the prosecution.

Adani was charged in 2024 with conspiring to bribe Indian officials to secure approvals for a solar plant project. Prosecutors also accused him of misleading U.S. investors about the company's anti-corruption practices. The Adani Group has consistently denied wrongdoing.

The Justice Department said last month it would no longer pursue the case. That appeared to close the matter. Garaufis did not sign off on the dismissal. He directed prosecutors to submit a justification for their move.

Adani's legal team filed a motion Wednesday asking the court to dismiss the indictment with prejudice. The judge's order means the resolution is now conditional on the government's explanation. The DOJ must respond before Garaufis makes a final ruling.

For Adani Green Energy, the entity most directly linked to the solar project at the center of the case, the delay prolongs a legal overhang. Shares in the company had recovered some ground after the DOJ's announcement last month. The judge's intervention introduces a new layer of uncertainty for investors.

The next step is the Justice Department's submission. The judge could accept the government's reasoning and dismiss the case quickly. Or he could find the justification insufficient, keeping the case active. Investors now wait for the DOJ's response and Garaufis's final ruling.

The broader Adani Group has faced regulatory and legal scrutiny since a 2023 short-seller report. The U.S. criminal case was the most serious legal threat to the conglomerate. Its resolution, even if favorable, remains incomplete.