Gautam Adani files affidavit rejecting claims of deal with US authorities

Adani Group chairman Gautam Adani has told a US court under oath that he is unaware of any promise, agreement or exchange that led the US Department of Justice (DoJ) to seek dismissal of the criminal case against him.

In a sworn affidavit filed before the US District Court for the Eastern District of New York, Adani said he was not aware of "anything promised, offered, sought, received, agreed to, or accepted" by anyone in connection with the government's decision to drop the indictment.

The affidavit was submitted in response to an 8 July order by US District Judge Nicholas Garaufis, who directed Adani to clarify whether he knew of any promise, offer, agreement or benefit linked to the DoJ's request to dismiss the charges with prejudice.

Adani also denied any knowledge of an arrangement involving the exchange of anything of value in return for the dismissal of the case.

The criminal indictment, filed in November 2024 under the Joe Biden administration, accused Adani and seven others of participating in a scheme to pay about USD 250 million in bribes to Indian officials to secure power supply contracts and of misleading investors while raising funds in US markets. Adani has consistently denied the allegations.

Addressing speculation that the DoJ's decision was linked to Adani Group's proposed investment plans in the United States, Adani said the company's intention to invest USD 10 billion had been announced publicly on 13 November 2024, before the indictment was unsealed.

According to the affidavit, Adani's legal representatives from Sullivan & Cromwell LLP met officials from the DoJ and the Securities and Exchange Commission (SEC), submitting a white paper, expert reports and other materials in support of their case.

The lawyers also indicated that the proposed investment could potentially form part of a broader resolution if US authorities wished to consider it. However, Adani said the DoJ later informed his legal team that the investment proposal would not be taken into account while deciding whether to seek dismissal of the case.

"The investment plan played no role in the department's decision," the affidavit states.

The filing follows a 4 July submission by the DoJ, in which principal associate deputy attorney-general R. Trent McCotter denied media reports suggesting the proposed dismissal was linked to Adani Group's investment plans.

"The current or former Department attorneys... have suggested that I sought dismissal of the securities charges at least in part because of some promise by those defendants to invest money in the United States. That is false," McCotter wrote. "I would have sought dismissal of the securities charges regardless of any mentions of investments. The mention of potential investments could not have played any role."

McCotter said he decided to seek dismissal because the case faced significant legal and practical hurdles. He argued that most of the alleged conduct took place in India, Indian authorities had found no actionable wrongdoing, investors had suffered no losses, key evidence and witnesses were outside the United States, and the defendants were unlikely to appear before a US court.

He also said charges under the Foreign Corrupt Practices Act no longer aligned with the Donald Trump administration's enforcement priorities, which focus on cases involving US national security, American companies or transnational criminal organisations.

However, Judge Garaufis said McCotter's filing had, "for the first time", raised the possibility that some form of agreement involving one or more defendants may have existed, even though no such arrangement had been disclosed to the court.

The judge noted that while Adani's lawyers had previously explained why the defendants consented to the government's motion to dismiss, they had made no reference to any agreement, including one involving investment commitments in the United States.

Garaufis said the court must be satisfied that the DoJ's reasons for seeking dismissal are genuine and that no undisclosed arrangement influenced its decision before approving the government's request under Rule 48(a).

The November 2024 indictment had triggered a sharp sell-off in Adani Group stocks, erasing nearly Rs 2.85 lakh crore in market capitalisation over four trading sessions and affecting millions of shareholders.

The DoJ has since asked the court to dismiss the criminal proceedings with prejudice, which would permanently close the case if approved.

With PTI inputs