Charges against Adani in bribery case could be dismissed if deemed unfounded, says prominent US attorney

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There is a possibility that the bribery charges against Indian billionaire Gautam Adani, involving a USD 265 million scheme, could be dropped if the case is found to be unfounded or defective once Donald Trump assumes office as US President, according to a prominent Indian-American attorney.

Attorney Ravi Batra, speaking to PTI, explained that the incoming President, who will take office on January 20, 2025, has the power to oversee significant changes in prosecutorial decisions. "Each new president brings in a fresh team, and President-elect Trump, as the 47th President of the US, will likely take action to end any prosecutions not based on good faith but rather on what he has referred to as 'lawfare'," Batra said.

Batra described 'lawfare' as the selective use of the law to target political opponents, denying them their right to equal protection under the law, as guaranteed by the US Constitution. He suggested that this is a principle Adani could invoke through diplomatic channels, urging the Indian government to raise the issue with the new administration.

"If the charges are found to be baseless or flawed, President Trump's Justice Department and the Securities and Exchange Commission (SEC) could potentially withdraw both criminal and civil cases," Batra explained. He also highlighted the importance of prosecutorial discretion in ensuring the integrity of both domestic and international legal systems.

The case against Adani, along with his nephew Sagar Adani and business associate Vneet Jaain, was unsealed last week in Brooklyn federal court. The indictment accuses the trio of orchestrating conspiracies to commit securities fraud, wire fraud, and obstruction of justice. The case claims they paid over USD 250 million in bribes to Indian government officials and misled investors and financial institutions to raise billions.

Batra also raised the issue of the extraterritorial reach of US laws, as neither Adani nor those involved reside in the US. "There is a fundamental question regarding the application of US laws in foreign jurisdictions," Batra noted, pointing out that Adani's role in the alleged bribery scheme spans beyond American borders.

Alongside the criminal charges, the SEC filed a civil case, alleging that Adani and his associates conducted fraudulent activities tied to renewable energy projects funded by US investors. The SEC claims Adani Green Energy raised more than USD 175 million through the scheme, while Azure Power's stock was traded on the New York Stock Exchange.

The timing of the case is significant, with changes at the SEC and within the US Attorney's offices expected following Trump's swearing-in. SEC Chair Gary Gensler announced his resignation, effective January 20, 2025, the same day Trump is set to take office. US Attorney for the Southern District of New York, Damian Williams, also plans to step down by December 13. These moves are part of a broader reshuffling of federal appointees ahead of Trump's second term, which will likely result in the appointment of new officials, including Jay Clayton, nominated by Trump to become the new US Attorney for the Southern District of New York.

The prospect of new appointments and a change in the prosecutorial landscape raises questions about the future of the case against Adani, especially as Trump's administration prepares to take a more hands-on approach to foreign policy and legal matters. As PTI reports, this could lead to a shift in how the charges are handled, with the potential for the case to be dismissed if found to be unsubstantiated.