US judge orders Justice Department to justify dropping Adani bribery case

A federal judge is not letting the Justice Department quietly walk away from one of the most high-profile foreign bribery cases in recent memory.

US District Judge Nicholas Garaufis ordered the DOJ to explain, in detail, why it wants to drop criminal charges against Indian billionaire Gautam Adani and several co-defendants. The judge’s problem with the government’s initial filing? He found it “terse, bland and conclusory.”

What the DOJ tried to do, and why the judge said no

The DOJ filed a motion on May 18, 2026, to dismiss the case with prejudice, meaning prosecutors wouldn’t be able to refile the charges later. The move came after reported civil settlements and amid discussions about Adani’s potential $10 billion in US investments.

Judge Garaufis, sitting in the Eastern District of New York, issued his ruling on June 26, 2026. He gave the DOJ until July 13, 2026, to come back with a real explanation.

The original charges were serious

The indictment was unsealed on November 20, 2024, and it wasn’t small. Federal prosecutors accused Gautam Adani, his nephew Sagar Adani, and other executives of conspiring to violate the Foreign Corrupt Practices Act. The charges also included securities fraud and mail and wire fraud.

The core allegation: over $250 million was funneled as bribes to Indian government officials to secure approvals for solar energy projects. Prosecutors said the defendants simultaneously misled US investors about the nature of these dealings, essentially raising capital from American markets while running a bribery operation on the other side of the world.

The political backdrop

The DOJ’s attempt to dismiss the charges came under the Trump administration, which had signaled a broader reassessment of certain federal prosecutions. The timing raised eyebrows, arriving shortly after civil settlements were reportedly reached and as Adani was reportedly in discussions about making substantial investments in the US economy. Prosecutors cited a “reassessment of resources” in their filing.

The 2020 Michael Flynn case saw similar judicial scrutiny when the DOJ moved to drop charges against the former national security adviser. That saga dragged on for months before eventually being resolved by a presidential pardon.

What this means for investors

The judge’s order creates a new window of uncertainty. If the DOJ can’t provide a satisfactory justification by July 13, the court could refuse to grant the dismissal. That would leave the criminal charges intact and potentially force prosecutors to either proceed to trial or engage in an extended legal battle over whether they can be compelled to prosecute.

The alleged bribes were tied to solar power projects, a sector that’s supposed to represent the clean future of energy. The charges allege that contract awards in the space may have been secured through $250 million in corrupt payments.

The July 13 deadline is the next date to watch. What the DOJ puts on paper, and how Judge Garaufis responds, will determine whether Gautam Adani faces trial in an American courtroom or walks away from one of the largest FCPA cases ever brought.

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