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Judge Questions DOJ's Adani Case Dismissal

Bloomberg Markets •
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A federal judge is pressing the U.S. Department of Justice for more details regarding its request to drop criminal charges against Indian billionaire Gautam Adani and seven others. The DOJ cited reasons including the conduct occurring abroad, difficulty in proving the case, and inconsistency with U.S. priorities in a 10-page filing.

Legal experts suggest it would be highly unusual for the court to deny the DOJ's request, as prosecutors must receive court permission to dismiss an indictment under Rule 48(a) of the Federal Rules of Criminal Procedure. While judges can seek additional information, there is little precedent for compelling the executive branch to pursue a case it has decided to abandon.

The DOJ's filing, responding to a June 26 order from U.S. District Judge Nicholas Garaufis, argued the prosecution was legally flawed and diplomatically counterproductive. The case, which involved alleged bribery and investor fraud totaling hundreds of millions of dollars, including at least $175 million raised by Adani Green Energy Ltd from U.S. investors, "should have been dropped a year ago." The department stressed that the alleged conduct was centered in India, Indian authorities had investigated, and investors suffered no financial losses.