Adani US fraud cases: DOJ, SEC may close in 2026

What Bloomberg reported and why it matters

US authorities are moving to end fraud cases against Gautam Adani, according to a Bloomberg report that cited people familiar with the matter. The report said the US Department of Justice (DOJ) may announce as early as this week that it is dropping criminal charges against Adani. Bloomberg also reported that the US Securities and Exchange Commission (SEC) is moving toward settling its parallel civil fraud case. Together, these steps, if confirmed, would mark a significant legal reprieve for Adani and the Adani Group. The cases have been a major source of scrutiny for the conglomerate since late 2024. The report adds a new twist because the SEC matter has already been contested in court filings by Adani and his nephew, Sagar Adani.

The criminal case: DOJ said to be preparing a withdrawal

Bloomberg reported that the DOJ is preparing to withdraw the criminal charges. The discussions were described as confidential, and people cited by Bloomberg spoke on condition of anonymity. The underlying US prosecution was announced by prosecutors in November 2024 in New York, with the US Attorney’s Office in Brooklyn referenced in the report. The indictment was described as a five-count case in which prosecutors alleged a bribery scheme linked to solar power contracts in India. Different descriptions in the report refer to an alleged bribery amount of about US$1.265 billion and, elsewhere, US$1.25 billion. Bloomberg noted that none of the defendants, including Gautam Adani and Sagar Adani, have appeared before the US court so far, and the case has effectively been stalled.

The SEC civil case: settlement talks alongside a jurisdiction fight

In parallel, the SEC brought a civil fraud case against Adani and others in November 2024, Bloomberg reported. The SEC matter is said to be moving toward a settlement, which could close the civil track even as the criminal case is reportedly being dropped. Bloomberg sources said any settlement with the SEC is likely to involve a monetary penalty. The report also notes that Gautam Adani and Sagar Adani have challenged the SEC’s civil case in federal court in New York. In April, they asked for the lawsuit to be dismissed.

The bond offering at the centre of the SEC complaint

The SEC case is tied to a US$1.75 billion bond offering by Adani Green Energy Ltd in 2021. In court filings in Brooklyn, the Adanis denied wrongdoing and argued that investors suffered no losses in the 2021 bond issue referenced by the SEC. They also argued the SEC lacks jurisdiction because both men are based in India, the alleged conduct took place entirely in India, and the securities were not listed on any US exchange. Their lawyers said the bonds were issued outside the US under Rule 144A and Regulation S exemptions. The filing also said the bonds were initially sold to non-US underwriters and only later resold in part to qualified institutional buyers. On that basis, the defence described the SEC’s claims as “impermissibly extraterritorial.”

‘No investor losses’ argument and repayment in 2024

A key line of defence highlighted in the report is the claim that the SEC failed to establish investor harm. The filings argue that the bonds matured and were repaid in full with interest in 2024. The Adanis have denied wrongdoing throughout, as cited in the report. The filings also argued there was no actionable fraud based on the alleged misstatements. Bloomberg reported that Adani’s lawyers said the alleged misstatements underpinning the SEC case were not actionable.

What US prosecutors alleged in 2024

The November 2024 allegations described in the report include claims that Adani and other executives participated in a bribery scheme involving about US$1.265 billion in payments to Indian government officials. Another portion of the report references an alleged US$1.25 billion bribery scheme. US authorities also alleged that Gautam Adani, Sagar Adani and former Adani Green Energy CEO Vneet Jaain raised more than US$1.0 billion through loans and bond offerings while concealing details of the alleged corruption from lenders and investors. Prosecutors charged them with securities fraud, securities fraud conspiracy and wire fraud conspiracy, Bloomberg reported. The SEC’s parallel complaint also alleged Adani spearheaded efforts to pay or promise hundreds of millions of dollars in bribes to induce officials to enter contracts needed for a major solar power plant project.

Key facts at a glance

Market impact: what could change for the Adani Group

Bloomberg said ending the cases would remove a major overhang for the Adani Group, which operates across ports, airports, renewable energy and infrastructure. The report also said it could reopen the door for the conglomerate’s return to international capital markets. From an investor perspective, the most immediate implication is the potential reduction in regulatory uncertainty in the US, particularly if both tracks are resolved. The case has also been closely watched because it involves alleged disclosures connected to offshore fundraising and a specific bond transaction. Any SEC settlement, if reached, would still leave investors focused on the settlement terms, especially the size and structure of any monetary penalty referenced by Bloomberg sources.

Analysis: why the jurisdiction questions became central

The report shows how cross-border jurisdiction issues can shape outcomes in enforcement actions. The Adanis’ court filings focus on where the alleged conduct took place, where the defendants are based, and whether the securities were listed on a US exchange. They also cite Rule 144A and Regulation S exemptions and the initial sale to non-US underwriters, positioning the SEC’s case as extraterritorial. Separately, Bloomberg’s note that the criminal case was stalled because the defendants remained outside the US highlights a practical constraint in prosecution timelines. Taken together, the developments underscore that enforcement risk is not only about allegations, but also about process, jurisdiction, and enforceability.

What to watch next

The immediate next trigger is whether the DOJ makes the announcement Bloomberg described as possible “as early as this week.” Investors will also watch for clarity on whether the SEC settlement is finalized and whether it includes a monetary penalty, as Bloomberg sources suggested. Court proceedings connected to the SEC case, including the Adanis’ request to dismiss the lawsuit, remain part of the backdrop until there is a formal resolution. Any confirmed closure of both cases would mark a significant shift from the posture established in November 2024. Until official statements are made, the Bloomberg report remains the primary source framing the potential timeline.