Judge Dismisses Most Adani Charges, Rebukes DOJ Official's Conduct
A federal judge on Monday dismissed three of five criminal counts against Indian billionaire Gautam Adani, granting the Justice Department's request to abandon a high-profile bribery and fraud case, but not before issuing a scathing rebuke of a senior DOJ official's handling of the matter. In a 47-page ruling, U.S. District Judge Nicholas Garaufis of the Eastern District of New York criticized Trent McCotter, the Principal Associate Deputy Attorney General, for what the judge called "highly unusual" and "unbecoming" conduct in his push to drop the case.
Garaufis agreed to dismiss three counts against Adani, but reserved judgment on two remaining counts against five co-defendants, saying the DOJ had failed to meet procedural requirements. The judge's decision comes after the Justice Department announced in May that it would no longer pursue the case, which had accused Adani of orchestrating a multi-billion-dollar scheme to bribe Indian officials and mislead U.S. investors.
Judge's Sharp Critique of DOJ Official
In his ruling, Garaufis did not mince words about McCotter's role. "The irregularities in the decision to dismiss the indictment are concerning," the judge wrote. "On the current record, McCotter appears to have eschewed the professional opinions of innumerable officials from various federal offices and replaced them with his singular judgment."
Garaufis noted that McCotter made the decision "largely in collaboration with defense counsel, and seemingly without input from the FBI and SEC agents who investigated the alleged misconduct, or the attorneys from the Department, SEC, and U.S. Attorney's Office who brought the case." This, the judge said, "appears to be highly unusual."
The judge also took issue with McCotter's characterization of the indictment as a politically motivated "name and shame" effort by the Biden administration. "McCotter appears to be accusing officials across four different government offices of bringing a detailed 54-page, 5-count indictment out of spite," Garaufis wrote. "However, he has not provided a scintilla of evidence to suggest that the timing of the unsealing of the Indictment, or the charging decisions, in this case was politically motivated. McCotter's baseless assertion is unbecoming of his office."
A Justice Department spokesperson, Kiersten Pels, pointed to McCotter's July court filing in which he said he made the decision to dismiss after consultation with defense counsel and department attorneys, "and after conducting my own research and analysis."
Background: The Case Against Adani
The charges against Adani, one of India's wealthiest industrialists and a close ally of Prime Minister Narendra Modi, stemmed from an alleged scheme to bribe Indian government officials to secure approval for a solar energy project. Prosecutors alleged that Adani and his associates made false and misleading statements to U.S. investors and financial institutions to obtain funds.
The Adani Group has consistently denied any wrongdoing. Adani himself never appeared in U.S. court to answer the charges. The case was unsealed in late 2024, in the final months of the Biden administration, and was among several high-profile white-collar prosecutions that the Trump administration later moved to drop.
The DOJ's Reversal and Legal Maneuvering
On May 18, the Justice Department informed the court that it would no longer pursue the case. This marked a significant reversal, as the department had initially pursued the indictment. Legal experts note that judges have limited discretion to compel prosecutors to continue a case they wish to drop, but formal dismissal requires judicial approval.
Garaufis had earlier asked the DOJ to justify its decision, calling its initial announcement "bland and conclusory." He also questioned whether anything was exchanged for the dismissal. In a sworn declaration filed on July 15, Adani said he was not aware of any agreement exchanging anything for the dropping of charges. He acknowledged having previously promised to invest $10 billion in the United States, but denied any quid pro quo.
The Role of Defense Counsel and Political Appointees
The case took a notable turn when Adani retained high-profile lawyers Bob Giuffra and Jamie McDonald of Sullivan & Cromwell. According to sources cited by CBS News, McCotter and other DOJ officials met with the defense team, where Giuffra made presentations disputing the evidence and suggesting that the Trump administration "would not have brought the case." He also mentioned Adani's willingness to invest $10 billion in the American economy if charges were dropped.
McDonald has since been nominated by President Trump to serve as U.S. Attorney for the Southern District of New York, adding another layer of scrutiny to the case's handling.
Implications and Broader Trends
The partial dismissal of the Adani case is part of a broader pattern in which the Trump administration has sought to shelve high-profile foreign bribery prosecutions. In February, President Trump ordered a review of all pending Foreign Corrupt Practices Act cases, and the Adani case was one of several that saw reversals or dismissals.
Legal experts say the judge's ruling sends a message about judicial oversight of prosecutorial discretion, even as it acknowledges the limits of that oversight. While judges typically defer to prosecutors, Garaufis's detailed critique highlights concerns about political influence in the Justice Department's decision-making.
The case also has significant diplomatic and economic ramifications. Adani is a dominant figure in India's infrastructure and energy sectors, and his ties to Modi make the case a sensitive issue in U.S.-India relations. The dismissal, even partial, may ease tensions but also raise questions about accountability.
What This Changes
The ruling does not fully exonerate Adani, as two counts against co-defendants remain pending. The DOJ has been given an opportunity to comply with procedural requirements for those counts. But the practical effect is likely to be minimal, as the department has shown little interest in pursuing the case.
The judge's sharp criticism of McCotter could have lasting effects within the Justice Department, potentially prompting reforms in how politically appointed officials handle case dismissals. It also underscores the tension between the executive branch's prosecutorial authority and the judiciary's role in ensuring fair process.
For observers, the case serves as a reminder of the fragility of high-profile prosecutions in a politically charged environment. Whether the Adani matter becomes a precedent or an outlier remains to be seen, but its impact on public trust in the justice system is likely to linger.
As the legal proceedings wind down, attention may shift to the broader implications for U.S. anti-corruption enforcement and the delicate balance between business interests and legal accountability. For now, the judge's words stand as a rare judicial rebuke of executive overreach in a closely watched case.
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