Two Democratic Senators Ask if US DOJ Move to Drop Adani Case is Influenced by $10 Billion Investment Offer

New Delhi: More than two weeks before a US federal judge demanded that the Justice Department explain its bid to abandon the criminal prosecution of Gautam Adani, two senior Democratic senators questioned whether the department's decision had been influenced by the billionaire's reported offer to invest $10 billion in the United States, seeking detailed answers about the circumstances surrounding the case.

In a June 11 letter to Acting Attorney General Todd Blanche, Senators Elizabeth Warren and Richard Blumenthal said the Justice Department's move to seek dismissal of the indictment raised "serious questions about corruption under President Trump" and about "the role that Mr. Adani's politically salient offer played in the DOJ's decision."

The letter assumes added significance after US District Judge Nicholas Garaufis on Friday (June 26) declined to immediately approve the government's request to dismiss the indictment against Adani and seven other defendants. Instead, he directed the Justice Department to explain by July 13 each reason for seeking dismissal and provide sufficient factual support before the court considers whether to grant the request.

The senators' queries were triggered by a New York Times report that Adani's lawyer, Robert Giuffra Jr, who also represents US President Donald Trump, told Justice Department officials during an April meeting that the Adani Group would invest $10 billion in the United States if the criminal case was dropped.

The senators asked the department directly, "Did Mr. Adani, or his representatives, make an offer, implicitly or explicitly, to invest $10 billion in the United States if the DOJ dropped its prosecution of him?"

If such an offer was made, they asked the Justice Department to disclose when it was made, the names of the officials present, "the precise wording and terms of the offer," and how department officials reacted. The senators also sought "the explanation provided by Mr. Adani or his representative, if any, as to why he could not make this investment before the DOJ dropped its charges."

Arguing that the circumstances surrounding the dismissal warranted greater scrutiny, Warren and Blumenthal wrote that the department's actions "appear to reduce accountability for the crime of bribery while also suggesting that quid-pro-quos can successfully undermine the enforcement of our laws."

'Risks furthering the misperception that bribery pays in the long run'

They added that the DOJ's decision gave "the appearance that Mr Adani – with the help of one of the President's personal lawyers – bought his way to criminal immunity, trading the promise of an investment in the United States for immunity from an alleged multi-billion dollar bribery scheme."

The senators also contended that the decision "risks furthering the misperception that bribery pays in the long run," noting that the dismissal had opened additional business opportunities for the Adani Group. They pointed to a rise in the group's share prices after the Department of Justice moved to dismiss the charges and cited commentary that the company could now expand its business in the United States because the allegations had been withdrawn.

The senators demanded a detailed account of how the decision to abandon the prosecution was reached – the final decisionmakers, whether any DOJ officials advised against dropping the case, when the department internally decided to seek dismissal and whether Blanche himself played any role.

Seeking details about communications from White House, if any, the letter asked, "Was President Trump or Vice President Vance involved in any aspect of the decision?"

The Justice Department indicted Adani and seven others in November 2024 over an alleged $250 million bribery scheme involving Indian state electricity contracts. While prosecutors accused the defendants of securities fraud conspiracy, wire fraud conspiracy and violating the Foreign Corrupt Practices Act, the Securities and Exchange Commission (SEC) separately sued Gautam and Sagar Adani for allegedly misleading investors during a 2021 bond offering.

The SEC had also announced a proposed settlement four days earlier, under which Gautam Adani agreed to pay a $6 million civil penalty and Sagar Adani $12 million, without admitting or denying the allegations.

The senators also pointed to a separate Treasury Department settlement worth $275 million by Adani Enterprises over alleged sanctions violations involving imports of Iranian-origin liquefied petroleum gas.

“Taken together, these actions by the DOJ, SEC, and Treasury Department raise serious concerns that the Trump Administration is using prosecutorial discretion and enforcement authority to advance the President's personal and political interests, rather than faithfully executing the law,” said the letter, uploaded on Warren’s official website.

The senators requested a response from Blanche by June 25. It is not known whether the Justice Department has replied.

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