In a significant development in the high-profile bribery case involving Indian billionaire Gautam Adani and other executives, a United States federal court has declined to immediately approve the Department of Justice's (DOJ) request to dismiss criminal charges against the accused.

Judge Nicholas G. Garaufis of the Eastern District of New York held that the DOJ had failed to provide adequate reasons for seeking dismissal of the indictment. The Court described the government's explanation as "terse, bland, and conclusory," stating that it lacked sufficient factual and legal justification to permit judicial review.

The Court directed the DOJ to file a detailed explanation by July 13, 2026, setting out each reason for seeking dismissal of the case along with supporting facts.

Court Says Dismissal Requires Proper Justification

The order was passed under Rule 48(a) of the Federal Rules of Criminal Procedure, which requires prosecutors to obtain court approval before dismissing criminal charges. Judge Garaufis emphasized that the rule functions as a "sunshine provision," ensuring transparency and preventing arbitrary withdrawal of prosecutions.

According to the Court, without adequate reasoning from the government, it cannot exercise its duty of applying "sound judicial discretion" when considering a request to dismiss an indictment.

Background of the Allegations

The indictment stemmed from allegations connected to a proposed 12-gigawatt solar power project in India.

US prosecutors had alleged that Gautam Adani, Sagar Adani, Vneet Jaain and others orchestrated a scheme to pay bribes to Indian state government officials in order to secure power supply agreements necessary for the project's viability.

According to the indictment:

• Bribes worth approximately ₹2,029 crore (about $265 million) were allegedly promised to officials of state electricity distribution companies.
• Around ₹1,750 crore was allegedly earmarked for officials in Andhra Pradesh to secure agreements for purchasing 7 gigawatts of solar power.
• Adani-linked entities allegedly raised more than $3 billion from US investors while concealing the alleged bribery scheme.
• Prosecutors further claimed that a $750 million bond issuance in 2021 attracted substantial investment from US-based investors without disclosure of the alleged misconduct.

Charges Faced by the Accused

The accused had been charged with several offences, including:

• Securities fraud
• Wire fraud
• Conspiracy to violate the Foreign Corrupt Practices Act (FCPA)
• Conspiracy to obstruct justice

The Adani Group has consistently denied the allegations and previously described them as baseless.

DOJ's Position

In its May 18 motion seeking dismissal, the DOJ stated that, after reviewing the matter, it had decided not to devote further governmental resources to pursuing the criminal prosecution. However, the Court found that this explanation alone was insufficient to justify terminating the case.

The latest order means that the criminal proceedings are not yet over, and the DOJ must now provide a more comprehensive justification before the Court decides whether the indictment against the Adani executives should be permanently dismissed.