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Seth DuCharme’s comments carry significant weight. As the former U.S. Attorney for the Eastern District of New York and currently Chair of Bracewell’s International Government Enforcement & Investigations practice, he has direct experience of how the Department of Justice operates, including filing Rule 48 motions to dismiss cases.
What makes his observations particularly important is his view that the DOJ’s 10-page response is unusual both in length and transparency. He noted that such motions are typically much shorter and provide far less explanation.
According to DuCharme, the most notable aspect is the DOJ’s decision to provide greater public transparency while exercising prosecutorial discretion, including explaining the change in enforcement priorities between the two administrations.
He also observed that the original indictment had elements of a “name and shame” exercise, given the low probability of the defendants ever appearing for trial. He further said that when prosecutors choose to dismiss a case after reassessing it, doing so can strengthen public confidence in the justice system.
These observations provide additional context in the Adani US legal matter. Coming from a former senior DOJ official with firsthand experience, they offer perspective on how the current DOJ filing may be viewed from within the US enforcement system.
For market participants, such developments may be relevant when assessing the evolving legal position, alongside the official court filings, judicial proceedings, and company disclosures.
Senior advocate Raian N. Karanjawala has correctly highlighted the procedural gap in the initial US DOJ approach on the Adani case.
The Department had earlier given only a one-line reason for dropping the charges. After US District Judge Nicholas Garaufis sought detailed justification on June 26, the DOJ filed a comprehensive 10-page response on July 4. This filing explains why the case lacked sufficient basis, including no investor losses and weak jurisdictional grounds.
This step provides incremental clarity on the path to resolution. The Adani Group had seen a sharp erosion of nearly $55 billion in market capitalisation in the days following the November 2024 indictment. As the legal process moves towards structured closure, with the next hearing scheduled around July 13, it could support near-term sentiment in Adani Group stocks today. Any positive reaction, however, will also depend on broader market flows and sector performance.
Investors should track price action and volumes in the coming sessions while considering overall fundamentals. This is not investment advice.
Very important words from senior advocate Harish Salve on the US DOJ’s decision to drop the criminal case against Gautam Adani.
Harish Ji has rightly pointed out that the detailed 10-page filing makes it clear the case “should never have been brought” and was essentially a “name-and-shame” exercise unsealed in the final days of the previous US administration, with little prospect of an actual trial.
In the US system, the decision to prosecute or drop a case lies with the executive (DOJ). The judiciary reviews it but does not force prosecutions. He contrasts this with certain instances in India where courts have sometimes pushed for investigations or prosecutions, blurring these lines.
This clarity from the DOJ itself that there was no real evidence strong enough to sustain the case and no losses to US investors is significant.
He also highlights a critical point that markets and investors often overlook: the irreversible damage to reputation caused by weak or politically motivated cases. He draws parallels with high-profile Indian cases like 2G and Jain Hawala, where eventual acquittals came only after massive reputational and sectoral damage had already been done.
The same principle applies here. The initial indictment had led to a sharp erosion of nearly $55 billion in Adani Group market capitalisation in late 2024.
This development further reduces a long-standing overhang. When even the prosecuting agency admits the case lacked merit and was pursued in a manner that left little room for actual adjudication, it sends a clear signal.
For Indian companies facing extraterritorial regulatory actions, this kind of closure especially on the merits rather than just procedure can gradually improve investor confidence and reduce risk premiums over time.
This episode was part of a broader anti-India narrative in certain sections of the US establishment and media is also worth noting. The strong language in the DOJ filing is typical of American legal discourse and should be read in that context rather than as an attack on the incoming administration.
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