US Drops Charges Against Gautam Adani and Nephew, AdaniConneX Lands $800M Loan

• US district court dismisses criminal charges against Gautam Adani and Sagar Adani.
• AdaniConneX Pvt. Ltd. secures $800 million loan from international lenders for data-centre expansion.
• The loan comes just days after the US court dismissed charges against Gautam Adani and his nephew.
• AdaniConneX had previously secured a $1.44 billion sustainability-linked construction financing framework in April 2024.

The case did not involve a trial or adjudication of the underlying allegations, effectively ending the criminal proceedings against Adani and his nephew.

A US district court has dismissed criminal charges against Gautam Adani, chairman of the Adani Group, and his nephew Sagar Adani. The case had accused them of involvement in an alleged bribery scheme and misleading US investors. The dismissal was made after a request by the US Department of Justice to dismiss the charges due to jurisdictional and evidentiary difficulties. Senior Judge Nicholas G Garaufis raised concerns about the manner in which the Justice Department arrived at its decision, questioning the involvement of senior DOJ official Trent McCotter and the decision-making process that led to the dismissal. The case did not involve a trial or adjudication of the underlying allegations, effectively ending the criminal proceedings against Adani and his nephew.

Just days after the US court dismissed charges against Gautam Adani and Sagar Adani, their data-centre joint venture AdaniConneX Pvt. Ltd. secured an overseas loan of about $800 million from a group of international lenders. The financing comes as AdaniConneX continues to expand its data-centre business in India, with the latest loan being raised through the company's 50:50 joint venture between Adani Enterprises and EdgeConneX. Other lenders involved in the deal include DBS Group Holdings, Mitsubishi UFJ Financial Group (MUFG), Clifford Capital, ING Bank, Intesa Sanpaolo, and Natixis. This is not AdaniConneX's first major overseas financing, as it had previously secured a $1.44 billion sustainability-linked construction financing framework in April 2024.

The dismissal of charges against Gautam Adani and Sagar Adani may have significant implications for data-centre projects in India, particularly those involving international lenders. Compliance officers should monitor the potential exposure of these lenders involved in financing AdaniConneX's data-centre expansion. Lawyers advising clients on data-centre projects in India should be aware of the credibility of the Adani Group as a partner or investor, given the US court's decision to drop charges against Gautam Adani and his nephew.

Lawyers advising clients on data-centre projects in India should be aware of the implications of the US court's decision to drop charges against Gautam Adani and his nephew, which may impact the credibility of the Adani Group as a partner or investor. Compliance officers should also monitor the potential exposure of international lenders involved in financing AdaniConneX's data-centre expansion.

Source: Original reporting via [Source]