Understanding US indictment: What it means and what are its implications

The recent US federal indictment against Gautam Adani has highlighted how the American justice system approaches charges of this nature. A federal indictment, such as the one involving Adani, is a formal accusation made by a grand jury. It reflects that prosecutors have provided sufficient evidence to justify criminal proceedings, marking a significant step in pursuing alleged violations like bribery, fraud, or other federal offenses.

What is an indictment?

An indictment is a formal legal document that charges an individual or entity with specific crimes. It outlines the alleged violations, the supporting evidence, and the legal framework under which charges are being brought. However, it is not a conviction, and the accused remains innocent until proven guilty in court.

THE LEGAL PROCESS

Grand jury evaluation

A group of citizens reviews the evidence presented by prosecutors in a confidential setting to decide whether there is probable cause to move forward with charges.

Charges filed

If the grand jury finds probable cause, the indictment formally lists the alleged crimes, citing relevant statutes and providing a factual summary of the case.

Post-indictment actions

The accused is summoned for arraignment, where charges are read, and they enter a plea. If the case proceeds to trial, prosecutors must prove guilt beyond a reasonable doubt.

IMPLICATIONS OF AN INDICTMENT 

Travel restrictions: An indictment can lead to an arrest warrant, potentially restricting international movement.

Asset freezes: U.S. authorities may freeze funds or assets linked to the accused.

Global impact: For multinational entities, such legal actions can trigger reputational and operational risks.

Extradition and jurisdiction

If the accused resides outside the US, extradition may be pursued. This process requires evidence to meet dual criminality standards, meaning the alleged crime must be punishable in both countries. Indian courts would need to evaluate the validity of the charges before extradition can occur.

While an indictment is a critical step in the judicial process, it is not the final verdict. The case will unfold through court proceedings, which will determine the outcome based on the evidence presented.

In a statement, the Adani Group denied the allegations and said that the charges made by the US Department of Justice and the US Securities and Exchange Commission against directors of Adani Green are baseless. 

“As stated by the US Department of Justice itself, the charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty. All possible legal recourse will be sought. The Adani Group has always upheld and is steadfastly committed to maintaining the highest standards of governance, transparency and regulatory compliance across all jurisdictions of its operations. We assure our stakeholders, partners and employees that we are a law-abiding organisation, fully compliant with all laws,” the group said in its official statement.