U.S. to drop Adani fraud charges after $10 billion investment offer, NYT reports

 

The U.S. Justice Department is planning to drop criminal fraud charges against Gautam Adani, India's richest man, following an unusual private meeting in Washington in which his lawyers offered to invest $10 billion in the American economy if prosecutors closed the case, the New York Times reported on May 14.

The NYT reported that the reversal came after Adani hired a new legal team led by Robert J. Giuffra Jr., one of President Trump's personal lawyers and co-chairman of Sullivan & Cromwell. According to the newspaper, Giuffra presented approximately 100 slides to Justice Department officials last month arguing that prosecutors lacked basic evidence and jurisdiction to pursue the case.

One slide in that presentation made what the Times described as "an unusual offer": if charges were dropped, Adani would invest $10 billion in the U.S. economy and create 15,000 jobs. The Times reported that the offer "received a favorable response from at least one senior Justice Department official," though prosecutors later told Giuffra the investment pledge would play no role in the criminal case's resolution.

The Times said the proposal "underscores the highly transactional approach to justice in Mr. Trump's second term."

Federal prosecutors in Brooklyn indicted Adani in late 2024, accusing him, his nephew and six associates of orchestrating a $265 million scheme to bribe Indian government officials to secure solar energy contracts, and of lying about the scheme to American investors. Adani has a net worth of $104 billion and heads the Adani Group, a major Indian conglomerate with interests in ports, airports, highways and media.

Even if criminal charges are dismissed, Adani faces substantial financial penalties. The Securities and Exchange Commission, which brought a parallel civil case, is expected to announce a settlement soon, imposing a penalty of roughly $18 million, the Times reported. Separately, the Treasury Department — which was investigating Adani companies over alleged shipments of Iranian gas in violation of U.S. sanctions — is preparing a penalty of potentially around $275 million.

People familiar with the matter told the Times that the expected dismissal was not a political favor but instead reflected the Trump administration's "broader retreat from foreign bribery cases and its reluctance to act as a global corporate police force." A senior Justice Department official at the meeting, Trent McCotter, reportedly drew parallels to the administration's earlier decision to drop corruption charges against New York City Mayor Eric Adams in exchange for cooperation on immigration enforcement.

A spokesman for Adani did not respond to a request for comment, the Times said.

The case has geopolitical dimensions: Adani has a close relationship with Indian Prime Minister Narendra Modi, and the original indictment strained U.S.-India business ties. Adani had publicly praised Trump after his November 2024 re-election and pledged the $10 billion U.S. investment at that time, a week before the charges were unsealed.

The Justice Department could move to dismiss the charges in the coming days, though the deal could still fall apart, the Times reported, citing people familiar with the matter.