Adani Enterprises to Adani Power: Adani Group stocks jump after US DoJ drops fraud charges against Gautam Adani

Shares of Adani Group stocks, including Adani Enterprises and Adani Ports and more, rose between 1% and 3.5% on Tuesday, 19 May, after the Trump administration moved to dismiss criminal fraud charges against billionaire industrialist Gautam Adani in the United States, easing a major legal uncertainty surrounding the conglomerate.

Adani Green Energy surged 3.5% to ₹1,417, while Adani Total Gas advanced 3.3% to ₹630.40. Moreover, Adani Group's flagship company, Adani Enterprises, jumped over 3% to ₹2,774.50. Adani Energy Solutions and Adani Power added 2.5% each, whereas Adani Ports was up 1%.

The relief came after the US Department of Justice filed a request in court seeking dismissal of criminal charges that had accused Gautam Adani and his associates of being involved in an alleged bribery scheme linked to power supply contracts in India.

At the same time, Adani Enterprises also settled separate allegations related to Iran sanctions violations involving liquefied petroleum gas imports, further reducing legal pressure on the group.

The development is significant because the US investigations had become one of the biggest overhangs for the Adani Group over the last several months, creating concerns among investors over regulatory scrutiny, fundraising and overseas expansion plans.

Moreover, reports suggested that Gautam Adani’s lawyer — who also serves as a personal attorney to US President Donald Trump — had indicated that the Adani Group was planning investments worth $10 billion in the United States.

According to a person aware of the matter, those investment proposals were unlikely to progress while the legal cases in the US remained pending.

What was the US case against Gautam Adani?

The US Securities and Exchange Commission (SEC) had earlier accused Gautam Adani, Sagar Adani and others of allegedly orchestrating a bribery scheme worth more than $250 million between 2020 and 2024 to secure solar energy contracts in India.

In simple terms, US authorities had alleged that certain individuals linked to the Adani Group offered bribes in India to win business contracts and that some related financial transactions indirectly touched US investors and markets.

The SEC case became possible because a portion of bonds issued by Adani Green Energy in 2021 eventually reached certain qualified institutional buyers in the United States through secondary market transactions.

However, lawyers representing Gautam and Sagar Adani argued before the court that the transactions largely involved Indian entities, Indian business operations and securities that were neither registered with the SEC nor traded on US stock exchanges.

According to the defence counsels, Adani Green Energy itself was not directly involved in the resale of those securities to US-based investors. The lawyers also argued that the alleged conduct occurred entirely in India and therefore, US courts lacked personal jurisdiction over the defendants.

On April 8, the US District Court for the Eastern District of New York accepted a plea filed by counsels representing Gautam and Sagar Adani seeking a pre-motion conference to dismiss the case.

Why the case dismissal matters for Adani Group

The latest development effectively ends a years-long criminal prosecution that had remained a major concern for investors tracking the Adani Group.

According to reports, the Trump administration’s move to drop the case came after the Adani Group reportedly pledged to invest $10 billion in the United States.

Federal prosecutors asked the court to permanently dismiss the criminal charges. According to a report by The Wall Street Journal quoting prosecutors, the Department of Justice decided not to devote further resources to pursuing criminal charges against the individual defendants.

However, at the time of reporting, the Adani Group had not issued any formal statement regarding the dismissal of charges.

Separately, the SEC also reportedly settled its civil lawsuit against Gautam Adani, subject to court approval. According to media reports, Gautam Adani agreed to pay civil penalties of $6 million, while Sagar Adani agreed to pay $12 million as part of the proposed settlement.

Importantly, the settlement reportedly does not include any admission of wrongdoing or guilt by the Adani family members.

(With inputs from agencies)

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.