US Judge Puts Gautam Adani case on hold, Seeks answers before dismissing charges; Justice department given deadline

New York: A United States federal judge has declined to immediately dismiss the criminal case involving Gautam Adani, despite the US Department of Justice (DOJ) stating that it no longer intends to pursue the prosecution.

According to a Reuters report, US District Judge Nicholas Garaufis, based in Brooklyn, has directed the Justice Department to provide a detailed explanation for its decision before the court considers formally closing the case.

Judge Wants More Than a Simple Withdrawal

The development comes after lawyers representing Gautam Adani requested the court earlier this week to formally dismiss the criminal proceedings, arguing that the government’s decision to drop the case should bring the matter to an end.

However, Judge Garaufis said the Justice Department’s notice lacked sufficient reasoning to justify such an order.

In his written ruling, the judge noted that the government’s submission was too brief and did not provide enough legal or factual basis for the court to independently assess the request for dismissal.

He has now directed the Justice Department to submit a more comprehensive explanation by July 13.

According to Reuters, the judge stated that the government’s statement was too “terse” and “conclusory” to allow the court to conduct a proper legal analysis before closing the case.

Adani’s Legal Team Seeks Closure

Representing Gautam Adani, lawyer Robert Giuffra argued before the court that the allegations fell outside the jurisdiction of US law. He also maintained that prosecutors were unable to substantiate the accusations made against his client.

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The defence requested that the court formally dismiss the matter following the Justice Department’s decision not to proceed further with the prosecution.

DOJ Had Earlier Dropped Criminal Charges

Last month, the US Department of Justice announced that it would permanently discontinue criminal proceedings against Gautam Adani and his nephew Sagar Adani, effectively ending the high-profile securities and wire fraud case that had been pending in New York.

The department concluded that it could not continue pursuing the allegations, leading to the withdrawal of criminal charges.

The decision also marked the closure of multiple legal and regulatory investigations involving the Adani Group in the United States.

Separate SEC Civil Settlement

Before the criminal case was withdrawn, the US Securities and Exchange Commission (SEC) had separately resolved civil allegations linked to investor disclosures concerning solar energy projects in India.

According to court filings, Gautam Adani agreed to pay USD 6 million, while Sagar Adani agreed to pay USD 12 million as part of the settlement.

Both individuals resolved the civil matter without admitting or denying any wrongdoing.

With the judge now seeking additional clarification from the Justice Department, the formal dismissal of the criminal case will remain pending until the court reviews the government’s detailed explanation.