Adani Denies Secret Deal: Chairman Sworn Topless That US DOJ Dismissal Was Not Linked to Investment Promises

Adani Denies Secret Deal: Chairman Sworn Topless That US DOJ Dismissal Was Not Linked to Investment Promises​

Gautam Adani, the chairman of the Adani Group, has publicly denied under oath that there was any promise or deal involved in the US Department of Justice's (DoJ) move to dismiss a criminal indictment against him. In a sworn affidavit filed with the US District Court for the Eastern District of New York, Adani stated he was unaware of any exchange connected to the decision to drop charges.

The affidavit came in response to a July 8 order from Judge Nicholas Garaufis. The judge specifically sought clarity on whether Adani was privy to any agreement or offer related to the DoJ’s decision to seek dismissal of the indictment that had been filed earlier in 2024.

Adani Rejects Quid Pro Quo Allegations Over US Investment Plans​

Adani unequivocally denied knowledge of "anything promised, offered, sought, received, agreed to, or accepted" by anyone in relation to the case dismissal. He specifically denied any understanding that involved an exchange of anything of value for the government dropping criminal charges.

The denial addresses persistent speculation regarding Adani Group's planned US investments. Adani stated that his group's intention to invest $10 billion in the United States was publicly announced on November 13, 2024, prior to the indictment being unsealed.

Adani’s legal counsel, Sullivan & Cromwell LLP, confirmed their meetings with DoJ and SEC officials and submitted various materials as part of the process. While the proposed investment could potentially form part of a resolution, Adani affirmed that the plan played no role in the department's decision to seek dismissal.

US Department's Reasoning Behind Seeking Dismissal​

The affidavit follows a July 4 filing by the DoJ where prosecutors rejected reports linking the case closure to commitments for investments in the United States. The Department argued such claims were false.

The prosecution’s strategy, according to the DoJ, was driven by significant legal and evidentiary challenges. They noted that the alleged conduct was primarily centered in India and involved no identified investor losses. Furthermore, they pointed out that the matters were already subject to investigations within Indian authorities.

A Principal Associate Deputy Attorney General stated that the indictment appeared to have been unsealed during the final days of the Joe Biden administration as a "name-and-shame" action. This assessment suggested leaving the matter for the succeeding Donald Trump Administration.

Judicial Scrutiny and Market Ramifications​

The case’s initial announcement, made in November 2024, had caused substantial turmoil in Adani Group stocks. The indictment triggered a sharp sell-off, wiping out nearly Rs 2.85 lakh crore in market capitalization over four trading sessions, affecting millions of shareholders.

The DoJ has since moved to dismiss the criminal proceedings with prejudice, which would bring the matter to a final conclusion.

Judge Garaufis's order underscored that while Adani's lawyers explained why defendants consented to the government’s motion, they had not mentioned any agreement—including one related to investing in the United States. The judge required assurance that no undisclosed arrangement influenced the DoJ's decision.