US May Drop Fraud Charges Against Gautam Adani After Trump Takes Office, Legal Expert Suggests

In a surprising turn of events, there is speculation that the bribery case against Indian billionaire Gautam Adani, involving a staggering $265 million, could be dropped after Donald Trump assumes office as the 47th President of the United States in January 2025. Legal experts suggest that the charges may be dismissed if they are deemed “unworthy or defective” under Trump’s administration.

Attorney Ravi Batra, a prominent Indian-American legal expert, shared his views with PTI, indicating that with the transition to a new president, there could be significant changes in the way such cases are handled. “Every new president brings a new team, and Trump has made it clear that he will not tolerate selective prosecutions,” Batra explained. He referred to Trump’s concept of “lawfare,” where the law is used to target political opponents, thereby violating the principle of “equal protection under the law” as guaranteed by the U.S. Constitution.

According to Batra, Adani’s legal team could potentially raise this issue with the incoming Trump administration, which may result in the charges being re-evaluated. He further suggested that if the criminal or civil charges against Adani are found to be lacking in merit, President Trump’s Justice Department and the Securities and Exchange Commission (SEC) could choose to withdraw the case.

The Bribery Charges and Extraterritorial Legal Issues

The charges against Adani, which were recently unsealed in a Brooklyn federal court, are centered around allegations of securities and wire fraud, with a conspiracy to pay over $250 million in bribes to Indian government officials. The indictment claims that Adani, along with his nephew Sagar Adani and associate Vneet Jaain, were involved in a multi-billion-dollar scheme to deceive U.S. investors and financial institutions. Prosecutors allege that the accused were involved in false and misleading statements to raise funds, with the added accusation of obstructing justice.

The charges also raised questions about the extraterritorial application of U.S. laws, as Adani and others involved in the case are based in India. Batra emphasized that the application of American laws outside U.S. borders could be challenged, adding a complex layer to the case.

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In parallel to the criminal case, the SEC filed a civil case accusing Adani and others of orchestrating the bribery scheme to benefit from a multi-billion-dollar solar energy project awarded by the Indian government. Adani Green Energy reportedly raised more than $175 million from U.S. investors, while Azure Power’s stock was listed on the New York Stock Exchange.

Changes Under Trump’s Administration

As Trump prepares for his second term, key figures in the U.S. legal system, including SEC Chairman Gary Gensler, who was appointed by President Biden, are expected to step down. Gensler’s resignation is set to take effect on January 20, 2025, the day Trump assumes office. This could pave the way for Trump to appoint a new SEC Chairman and Justice Department officials, some of whom may be inclined to review and potentially withdraw such high-profile cases.

The new appointments may also result in a shift in prosecutorial priorities. Trump has already begun announcing his choices for key positions in his second term, including his nomination of Jay Clayton, the former SEC Chairman during his first presidency, to become the U.S. Attorney for the Southern District of New York.

What This Means for Adani

As Gautam Adani continues to face legal challenges in the U.S., the possibility of the charges being dropped under Trump’s administration has sparked significant interest. While it remains to be seen how the new president will handle the case, the appointment of new officials could dramatically change the trajectory of Adani’s legal battle.

Given the potential for prosecutorial discretion and the possibility of diplomatic discussions between the U.S. and India, the coming months could bring a major shift in the case against Adani. The business tycoon’s legal team is likely to keep a close watch on these developments, especially as Trump’s presidency approaches.

As the legal proceedings unfold, both sides are preparing for a new chapter that could have far-reaching implications for Adani, his business empire, and international relations between the U.S. and India.