Fraud charges against Indian billionaire Adani dropped after a $10 billion US investment pledge

WASHINGTON, May 18: The administration of U.S. President Donald Trump has dropped a high-profile fraud case against Indian billionaire Gautam Adani and moved to resolve related sanctions allegations, while also announcing a new fund aimed at addressing claims of political “weaponization” of federal agencies.

According to U.S. officials, the Justice Department agreed to dismiss criminal fraud charges alleging that Adani and associates were involved in a bribery scheme connected to Indian infrastructure projects and subsequently misled investors in the United States. The case had been initiated under the previous administration of President Joe Biden.

In a parallel development, U.S. authorities also settled allegations of sanctions violations involving Iranian-origin liquefied petroleum gas shipments. As part of the resolution, Adani-linked entities agreed to financial penalties, while denying any wrongdoing.

The move comes after Adani’s legal representative — who also serves as President Trump’s personal attorney — reportedly informed U.S. officials that the billionaire was prepared to invest up to $10 billion in the United States, but could not proceed while legal proceedings remained unresolved.

Adani, founder of the Adani Group and one of the world’s wealthiest businessmen, had previously been accused by U.S. prosecutors of participating in a $265 million bribery scheme involving Indian officials to secure approvals for large-scale energy projects. Authorities further alleged that more than $3 billion was raised from investors while key details of the alleged misconduct were not disclosed.

The Adani Group has consistently denied all allegations of wrongdoing but agreed to pay all financial penalties.

In a separate but related announcement, the Trump administration said it has created a nearly $1.8 billion fund intended to compensate individuals it describes as victims of political “weaponization” by federal agencies. Officials said the fund is part of a settlement stemming from a lawsuit Trump filed against the Internal Revenue Service over alleged mishandling of his tax records.

That lawsuit stemmed from claims that the IRS failed to prevent the leak of Trump’s tax information by a former contractor, prompting him to seek $10 billion in damages.

U.S. authorities said the new arrangement resolves the legal dispute without proceeding to trial.

The developments mark a significant shift in several high-profile legal and regulatory cases, with the Trump administration moving to settle or dismiss actions initiated under the Biden administration, particularly those involving major corporate and political figures.

Adani, whose net worth is estimated at around $82 billion by Forbes, has also faced separate scrutiny from U.S. regulators, including civil proceedings related to sanctions compliance and investor disclosures.

While the latest agreements provide relief to Adani-linked entities, officials said regulatory oversight and compliance obligations remain in place under U.S. law.

Also, the U.S. Treasury Department has announced that Adani Enterprises Limited (AEL) has agreed to settle potential civil liability related to 32 apparent violations of U.S. sanctions on Iran, following an investigation by the Office of Foreign Assets Control (OFAC).

According to the Treasury, the violations are linked to AEL’s purchases of liquefied petroleum gas (LPG) between November 2023 and June 2025, which were allegedly routed through a Dubai-based supplier that claimed the shipments originated from Oman and Iraq. OFAC said the investigation found that “red flags” should have alerted the company that the cargoes were actually sourced from Iran.

As part of the settlement, AEL has agreed to implement additional non-monetary remedial measures aimed at strengthening its compliance with U.S. sanctions regulations. The company also confirmed in a stock exchange filing on Monday that the agreement was executed on May 14.

The announcement comes just days after a separate legal development in which Adani agreed to an $18 million civil settlement in a U.S. court case related to corruption allegations, without admitting wrongdoing. In that case, he was accused of involvement in an alleged $250 million bribery scheme linked to solar energy contracts in India.

AEL stated that it cooperated fully with the OFAC investigation and has taken steps to enhance its internal compliance framework.