Judge Garaufis Demands DOJ Justify by July 13 Why It Abandoned Adani Prosecution

For legal and compliance professionals, Judge Garaufis' refusal to immediately dismiss the Adani indictment signals a rare judicial pushback against prosecutorial discretion. It raises critical questions about the standard of review for nolle prosequi requests in complex fraud cases with international dimensions.

In a significant judicial intervention, U.S. District Judge Nicholas Garaufis of the Eastern District of New York has refused to immediately dismiss the criminal indictment against Indian billionaire Gautam Adani and his co-defendants, ordering the Department of Justice (DOJ) to provide a detailed justification for its decision to abandon the prosecution. The ruling, issued on June 26, 2026, injects fresh uncertainty into a case that many had thought was closed after the DOJ announced in May 2026 that it would no longer pursue the charges. Judge Garaufis’s order delays a final resolution and sets a July 13 deadline for federal prosecutors to explain why dismissal serves the public interest.

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The Adani Group has consistently and vehemently denied all allegations, and several other U.S.

The underlying indictment, filed in 2024, accuses Adani, his nephew Sagar Adani, and others of securities and wire fraud in connection with an alleged scheme to bribe Indian government officials to secure approvals for a solar energy project, while simultaneously misleading U.S. investors about the company’s anti-corruption practices. The Adani Group has consistently and vehemently denied all allegations, and several other U.S. regulatory and legal investigations involving the group have been closed. Following the DOJ’s notice last month that it would not proceed, Adani’s legal team, led by prominent attorney Robert Giuffra, moved earlier this week to formally dismiss the indictment, arguing that U.S. law did not apply and that the evidence was insufficient.

Judge Garaufis, however, rebuffed that motion, calling the government’s filing “terse, bland, and conclusory.” In a written order, he stated that the DOJ’s cursory notice “affords the court neither a sufficient basis to reach any conclusion nor the opportunity to conduct any analysis of the Government’s request for dismissal.” The judge emphasized that without a fuller explanation, the court could not properly exercise its discretion under the Federal Rules of Criminal Procedure, which require that dismissal of an indictment be “in the public interest.” He therefore directed prosecutors to submit a memorandum by July 13 detailing the factual and legal grounds for dropping the case.

Legal experts note that federal courts typically have limited authority to compel prosecutors to pursue charges once they decline. The principle of prosecutorial discretion is broad, and judges rarely reject a government motion to dismiss an indictment—a doctrine known as nolle prosequi. However, the Rule 48(a) under which such motions are made explicitly provides that dismissal requires “leave of court,” and judges have occasionally pushed back when they perceive that the government’s reasoning is inadequate or potentially influenced by improper considerations. By demanding additional information, Judge Garaufis is not overriding the DOJ’s charging decision but is ensuring that the record reflects a reasoned exercise of prosecutorial power, particularly in a high-profile matter with international dimensions.

The implications are multifaceted. For the Adani Group, the ruling means that the indictment technically remains alive, even if the DOJ has signaled it will not pursue it. This perpetuates legal overhang and reputational risk, potentially complicating the conglomerate’s ability to access U.S. capital markets or negotiate with international partners. Although Adani stocks have partially recovered from the 2023 Hindenburg Research short-seller report, news of the judicial hold could spark renewed volatility, especially if subsequent filings reveal embarrassing details or if the judge signals a more active role.