Adani Group Shares Surge Following US Decision to Dismiss Fraud Charges Against Gautam Adani

Adani Group Stocks Surge as US Drops Fraud Charges Against Gautam Adani

Shares of Adani Group stocks, including Adani Enterprises and Adani Ports, 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. This development eases 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.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

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.

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. 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.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Comparison of Adani Group Stocks

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.

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.