New Delhi, Aug 12:
Congress leader and Leader of Opposition in the Lok Sabha Rahul Gandhi on Wednesday stepped up his attack on Prime Minister Narendra Modi after a US federal court permanently dismissed several criminal charges against Adani Group chairman Gautam Adani and his nephew Sagar Adani.
Gandhi alleged that the development showed there was “much more to this than meets the eye” and accused the Prime Minister of compromising India’s interests.
“India is paying a huge price,” Gandhi said in a post on X, alleging that a “compromised PM” had been forced to “sell India’s interest”.
The remarks came after US District Judge Nicholas Garaufis of the Eastern District of New York approved the US Justice Department’s request to permanently dismiss three charges against Gautam Adani, Sagar Adani and former Adani Green Energy CEO Vneet Jaain.
The dismissed charges related to securities-fraud conspiracy, wire-fraud conspiracy and securities fraud. The dismissals were made with prejudice, meaning the same charges cannot be brought again.
However, the court did not rule on the merits of the allegations. Judge Garaufis made it clear that the dismissal should not be interpreted as a finding that the allegations were unfounded.
Two other counts — relating to alleged violations of the Foreign Corrupt Practices Act and an alleged conspiracy to obstruct justice — remain pending and involve five India-based defendants who have not appeared before the US court.
The Justice Department has been directed to meet certain requirements by August 31, while lawyers representing the non-appearing defendants have also been asked to confirm their clients’ consent by the deadline.
No trial had taken place in the case, meaning the allegations were never tested through examination of witnesses or presentation of evidence before a jury.
The US Justice Department had sought dismissal of the charges in May following a review of the case. It cited jurisdictional and evidentiary difficulties, the predominantly India-based nature of the alleged conduct, scrutiny by Indian authorities and the absence of identified investor losses.
The department also said continuing the prosecution no longer aligned with its priorities and argued that the case, which was unsealed during the final weeks of the Biden administration, had little realistic prospect of reaching trial.
The Adani Group has consistently denied the allegations and maintained that it complied with applicable laws.
Following the court’s decision, Gautam Adani welcomed the development, saying he accepted it with humility and respect for the judicial process.
The case has been a major political flashpoint in India, with Rahul Gandhi repeatedly raising allegations concerning the Adani Group and accusing the Modi government of favouring the conglomerate. The latest court decision is therefore likely to trigger another round of political confrontation between the Congress and the BJP.