US set to drop fraud cases against India's Billionaire Gautam Adani: Bloomberg

14/05/2026

NEW DELHI, May 14: US authorities are reportedly preparing to drop fraud-related cases against Indian billionaire Gautam Adani. This move could provide significant legal relief for the Adani Group after months of regulatory scrutiny in the United States.

According to a Bloomberg report citing sources familiar with the matter, the US Department of Justice may announce as early as this week that it is ending its criminal investigation involving Adani. The US Securities and Exchange Commission (SEC) is also reportedly moving toward resolving a related civil fraud case, potentially bringing the long-running legal dispute to a close.

The development comes despite ongoing efforts by Gautam Adani and his nephew Sagar Adani to dismiss the SEC lawsuit filed against them in federal court in New York. In court filings submitted in April, the Adanis denied any wrongdoing and argued that investors did not suffer financial losses linked to the 2021 bond offering at the center of the SEC’s allegations.

The SEC case centers on a $750 million bond issuance by Adani Green Energy in 2021. Lawyers representing the Adanis argued that the SEC lacks jurisdiction because both men are based in India, the alleged conduct took place entirely within India, and the securities involved were not listed on any US stock exchange.

According to the defense, the bonds were issued outside the United States under Rule 144A and Regulation S exemptions. They were initially sold to non-US underwriters before being partially resold to qualified institutional buyers, leading the defense to characterize the SEC’s claims as an improper attempt to apply US securities law beyond its borders.

The Adanis’ legal team also argued that the SEC failed to demonstrate investor harm, noting that the bonds matured and were fully repaid with interest in 2024. The filings further stated that regulators had not shown direct involvement by Gautam Adani in approving the bond issuance, participating in key meetings, or making statements specifically targeting US investors.

Statements referenced by the SEC concerning environmental, social and governance (ESG) commitments, anti-corruption measures and corporate governance practices were described by the defense as general corporate messaging rather than evidence of fraud.

If the Justice Department formally withdraws the criminal case and the SEC settles, it would remove a major legal uncertainty hanging over the Adani Group. The conglomerate has continued to expand across sectors, including ports, airports, renewable energy, and infrastructure, despite increased scrutiny from US regulators. Analysts say such a move could also strengthen the group’s ability to re-enter international capital markets.