Adani Group Shares In Spotlight After Reports Hint At Possible Relief In US Case

Shares of Adani Group companies opened higher on Friday, 15 May, in early trade after reports suggested that US authorities may move to resolve fraud charges against chairman Gautam Adani and end a criminal case linked to alleged bribery and investor fraud. The shares surged up to 5% intraday.

Adani Enterprises Ltd, Adani Ports Ltd, Adani Green Energy Ltd, Adani Energy Solutions Ltd, and Adani Power Ltd all started the session in positive territory.

US Justice Department Reportedly Weighs Case Closure

A report by The New York Times (NYT), citing people aware of the development, said the US Justice Department is planning to drop charges that were filed in the final weeks of the Joe Biden administration.

The case had earlier alleged an “elaborate bribery scheme involving corruption and fraud at the expense of US investors,” according to prosecutors cited in the report.

The report added that discussions have gathered pace after Adani Group brought in a new legal team led by Robert J. Giuffra Jr, co-chairman of Sullivan & Cromwell and also a personal lawyer to US President Donald Trump.

Investment Proposal And Settlement Talks

According to the NYT report, Adani’s legal team proposed in a meeting at the US Justice Department headquarters last month that charges could be dropped if Gautam Adani commits to investing $10 billion in the US and creating 15,000 jobs.

The same proposal also aims to settle parallel proceedings involving the US Securities and Exchange Commission and a separate investigation by the US Treasury Department.

The report said both agencies are now preparing settlement discussions that may involve financial penalties.

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Separate Reports Point To Monetary Settlements

A Bloomberg report added that Adani Group is in talks for a potential $15 million to $20 million settlement in a civil fraud case filed by the US SEC in November 2024.

The report also said the group is nearing an agreement to pay close to $275 million to resolve a separate investigation by the Office of Foreign Assets Control.

These discussions remain under negotiation, according to people familiar with the matter cited in the report.

Sources:

CNBC TV18

The Economic Times