India, Aug. 12 -- A US federal judge has permanently dismissed the criminal securities-fraud case against Adani Group chairman Gautam Adani and his nephew Sagar, closing nearly two years of prosecution without a trial.

US District Judge Nicholas Garaufis of the Eastern District of New York granted the Justice Department's Rule 48(a) motion, dismissing Counts Two, Three and Four of the indictment - covering securities-fraud conspiracy, wire-fraud conspiracy and securities fraud - with prejudice, meaning the charges cannot be refiled.

The court reserved judgment on Count One (Foreign Corrupt Practices Act violations) and Count Five (obstruction of justice) as they relate to non-appearing defendants, pending further compliance by the Gover...