US judge questions Justice Department's dismissal of Adani case
What's the story
A US federal judge has asked Indian billionaire Gautam Adani to clarify if he knows about any quid pro quo related to the Department of Justice (DOJ)'s decision to drop a criminal indictment against him. The case is linked to alleged securities fraud and bribery. The directive was issued by US District Judge Nicholas G Garaufis of the Eastern District of New York.
Information request
Adani to file affidavit by July 15
Judge Garaufis has asked Adani to file an affidavit by July 15, clarifying if he knew of any promise, offer, or agreement related to the DOJ's dismissal request. The court also wants him to confirm if there was any agreement where a benefit was exchanged for the dismissal of criminal proceedings. This comes after Principal Associate Deputy Attorney General R Trent McCotter said he alone decided on the DOJ's dismissal request.
Court skepticism
Judge skeptical after DOJ withdrew prosecution
Judge Garaufis questioned the DOJ's explanation, noting it hinted at an undisclosed arrangement involving one or more defendants. He said before using its powers under Rule 48(a) of the Federal Rules of Criminal Procedure, it must be satisfied that the government's reasons for seeking dismissal are substantial and represent actual grounds for abandoning prosecution. The judge's skepticism comes after the DOJ withdrew prosecution, calling the case legally flawed and diplomatically counterproductive.
Dismissal rationale
Indictment a 'name and shame' prosecution, says DOJ
The DOJ has argued that the indictment was a "name and shame" prosecution with no realistic prospect of proceeding to trial. It also said the allegations were overwhelmingly foreign in nature, involving Indian nationals allegedly bribing other Indians over Indian electricity procurement contracts. The department contended such prosecutions unnecessarily extend US criminal jurisdiction into matters better handled by Indian authorities and risk creating diplomatic friction.
Pending approval
Judge yet to approve government's motion
Judge Garaufis has not yet approved the government's motion. He had earlier asked the DOJ to explain its legal basis for abandoning prosecution and postponed consideration of the dismissal application until more material was placed on record. The court also noted a June 24 submission filed on behalf of Gautam Adani, Sagar Adani, and Vineet Jain supported the government's request but did not reveal any agreement involving an investment commitment or other consideration in exchange for dismissal of charges.