Adani Group Stocks Rally Up To 4% After US Drops All Criminal Charges Against Gautam Adani

Adani Group Stocks: Shares of Adani Group companies gained up to 4 per cent on May 19 after the US Department of Justice moved to drop criminal fraud charges against billionaire Gautam Adani and his nephew Sagar Adani, easing a major legal overhang on the conglomerate.

US prosecutors in the Eastern District of New York requested the court to dismiss the indictment against the Adanis with prejudice, meaning the case cannot be reopened. The court subsequently ordered that the charges against Gautam Adani, Sagar Adani and others be dismissed permanently.

“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 filing said.

The securities and wire fraud case in New York had accused the Adanis of misleading investors in relation to solar energy projects in India.

The development comes after multiple US investigations involving the Adani Group were resolved over the past few days.

Last week, the US Securities and Exchange Commission (SEC) settled civil allegations related to disclosures made to investors in connection with the solar projects. Court filings showed Gautam Adani agreed to pay $6 million and Sagar Adani agreed to pay $12 million, without admitting or denying wrongdoing.

Separately, the US Treasury Department’s Office of Foreign Assets Control (OFAC) settled allegations related to Adani Group’s LPG imports involving Iran sanctions violations. The group agreed to pay $275 million and cooperated with the investigation, including making proactive disclosures.