The latest judgment by a US federal court dismissing the criminal bribery and fraud case against Adani Group chairman Gautam Adani has come as a significant political relief for YSR Congress Party president and former Andhra Pradesh Chief Minister Y.S. Jagan M The latest judgment by a US federal court dismissing the criminal bribery and fraud case against Adani Group chairman Gautam Adani has come as a significant political relief for YSR Congress Party...
The latest judgment by a US federal court dismissing the criminal bribery and fraud case against Adani Group chairman Gautam Adani has come as a significant political relief for YSR Congress Party president and former Andhra Pradesh Chief Minister Y.S. Jagan Mohan Reddy.
US District Judge Nicholas Garaufis on August 10 approved the Justice Department’s request to dismiss the criminal case against Adani.
The Justice Department had argued that the alleged conduct largely occurred outside the United States, that the case would be difficult to prove and that it no longer matched the department’s enforcement priorities.
The judge, however, made it clear that the dismissal was not a finding that the original allegations were false.
US prosecutors had charged Gautam Adani, his nephew Sagar Adani and others in November 2024 in connection with an alleged scheme involving more than $250 million in bribes to Indian government officials to secure solar power contracts.
Prosecutors had also alleged that the scheme was concealed from US investors while funds were being raised.
The case had attracted political attention in Andhra Pradesh because US court documents referred to Andhra Pradesh and to a meeting involving the then Chief Minister.
According to the SEC complaint, Gautam Adani allegedly met the Chief Minister of Andhra Pradesh in August 2021 regarding the state’s failure to enter into a power supply agreement with the Solar Energy Corporation of India and the alleged “incentives” required to facilitate such an agreement.
The documents did not name Jagan Mohan Reddy as an accused in the US criminal case.
However, since Jagan was the Chief Minister of Andhra Pradesh during that period, the allegations became a major political issue, with his opponents repeatedly linking his government to the controversy.
Andhra Pradesh later entered into agreements to purchase 7,000 MW of solar power from SECI during the Jagan government.
Jagan had strongly rejected any wrongdoing and maintained that the power purchase agreement was between Andhra Pradesh’s power distribution companies and SECI, a Central government entity, and not directly with the Adani Group.
He had also defended the agreement on financial grounds, saying the state was able to secure power at Rs 2.49 per unit compared with higher prevailing costs.
The Adani Group has consistently denied the bribery allegations and maintained that it complied with applicable laws.
The dismissal of the US criminal case therefore removes a major legal proceeding that had repeatedly been cited in political attacks against Jagan.
However, it would be inaccurate to say that the court has “cleared” Jagan or ruled that all allegations involving Andhra Pradesh were false.
The court dismissed the criminal prosecution at the request of the US government and did not make a final finding on the truth of the underlying allegations.
Politically, though, the development gives Jagan and the YSRCP fresh ammunition to argue that the US criminal case that had been used against them has now come to an end.
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