A U.S. District judge Nicholas Garaufis has asked the Justice Department to explain its decision to drop criminal charges against Gautam Adani, leaving the case pending for now instead of immediately approving prosecutors' request to dismiss it, Reuters reported Friday.
The judge said the Justice Department's filing did not adequately explain why it wanted to abandon the 2024 case, which accused Adani of securities fraud and wire fraud linked to an alleged bribery scheme. The judge directed prosecutors to submit additional information by July 13.
The charges stemmed from allegations that Adani approved bribes to secure approvals for a solar power project in India and misled U.S. investors about the company's anti-corruption practices.
Adani's lawyers have argued the case falls outside U.S. jurisdiction and that prosecutors would be unable to prove the alleged bribery.
Adani group did not immediately respond to' request for comment.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)