Shares of Adani Group companies rose in early trade on Tuesday after a US court dismissed fraud-related charges against group founder and chairman Gautam Adani, his nephew Sagar Adani and Adani Green Energy executive Vneet Jaain.
The relief from the US legal proceedings triggered gains across Adani stocks, even as the broader Indian equity market faced selling pressure due to rising crude oil prices.
Adani Enterprises, the group's flagship company, gained 2.6 per cent to ₹3,080 on the BSE, while Adani Ports rose 1.5 per cent in opening trade.
Adani Green Energy was the biggest gainer among group companies, rising 3.5 per cent. Adani Energy Solutions, Adani Power, Adani Total Gas and NDTV advanced between 1 per cent and 2 per cent. Cement companies ACC and Ambuja Cement also traded higher by around 0.5 per cent.
The case against Gautam Adani and Sagar Adani was filed in 2024 during the final days of the Joe Biden administration. US prosecutors had accused them of agreeing to pay bribes worth around $250 million to Indian government officials to secure approval for a solar energy project.
Authorities had also alleged that investors were misled while the Adani Group raised more than $3 billion through loans and bond issuances in US markets. The Adani Group has repeatedly denied the allegations.
US District Judge Nicholas Garaufis dismissed the charges with prejudice, meaning the government cannot reopen the case in the future. In a statement shared on X, Gautam Adani welcomed the court's decision and expressed respect for the judicial process.
Judge Garaufis approved the US Justice Department's request to drop the case after seeking further clarification from prosecutors regarding their decision. Before dismissing the charges, the judge directed the Justice Department to publicly explain its reasons for seeking withdrawal of the case.
He also required the defendants to submit sworn statements confirming there was no promise, agreement or undisclosed arrangement connected with the dismissal request.
The judge said he was satisfied that Gautam Adani's November 2024 announcement of a planned $10 billion investment in the US had no role in the Justice Department's decision to withdraw the case.
The court order has removed a major legal hurdle for the conglomerate, with reports suggesting that the ruling could help Adani expand its business presence in the US. The market reaction reflected investor relief, with Adani Group stocks gaining despite cautious sentiment across Indian equities.
The US District Court on Monday dismissed with prejudice charges of securities fraud, wire fraud conspiracy and securities fraud conspiracy against Gautam Adani, Sagar Adani and Vneet Jaain, meaning the charges cannot be filed again.
The three were accused of misleading US and international investors about an alleged scheme to pay Indian officials approximately $265 million in bribes to secure solar energy contracts. They had denied wrongdoing.
Garaufis accepted the Justice Department's narrow argument that corporate statements cited in the indictment could be considered vague assurances or "inactionable puffery" rather than material misrepresentations. However, the judge rejected the department's broader criticism of the prosecution.
Justice Department official R. Trent McCotter had described the indictment as a "name and shame" exercise by the previous administration and suggested that officials had deliberately left "a potential quagmire of a case" for the incoming administration.
The ruling did not dismiss the entire five-count indictment against all eight defendants. Garaufis reserved judgment on foreign bribery and obstruction charges against Ranjit Gupta, Cyril Cabanes, Saurabh Agarwal, Deepak Malhotra and Rupesh Agarwal, and ordered the Justice Department to provide sufficient factual support for dismissing those charges by August 31.
The judge also stressed that the dismissal of the fraud charges should not be interpreted as an endorsement of the Justice Department's decision or as an opinion on the merits of the allegations.
The indictment was returned in October 2024 and unsealed the following month. Prosecutors had alleged that the defendants were involved in bribery, investor fraud and obstruction schemes linked to renewable energy projects in India.
Meanwhile, Gautam Adani welcomed the court's decision, saying the Adani Group's faith in "truth, fairness and the rule of law" had remained unwavering throughout the case.
"Throughout this challenging period, our faith in truth, fairness and the rule of law remained unwavering," Adani said in a post on X. He also expressed gratitude to those who continued to have faith in the group, the judicial system and India's capacity for justice.
"We will continue doing what matters: building for our nation, creating value that outlasts us and serving a purpose larger than ourselves. That is our commitment," he said.
Separately, the court finalised a settlement between the Adanis and the US Securities and Exchange Commission (SEC), under which they will pay the US government $18 million to settle the civil securities fraud charges. The civil proceedings remain distinct from the criminal case and were not automatically ended by Monday's ruling.
Last month, the US Department of Justice had told the federal court that investors suffered no financial losses in the securities at the centre of the case, arguing that the absence of investor losses further weakened the government's prosecution and supported its decision to seek dismissal of the criminal charges.
In a filing before the US District Court for the Eastern District of New York, the department said one of the central weaknesses in the securities fraud case was that investors had not suffered financial harm. It stated that "not a single penny has ever been lost on the securities at issue", adding that two of the notes involved had been fully repaid, while the other two remained current with no indication of a change.
