US President Donald Trump made a major shift in foreign policy by signing an executive order directing the justice department to pause prosecutions under the Foreign Corrupt Practices Act (FCP) of 1977 which brings a great reprieve for the Indian industrial group Adanis and relief from US courts where his group faces alleged bribery charges and prosecution.
The move brings great relief to several American firms and executives, including key officials of the Adani Group, who are facing bribery charges in a US court. The order instructs Attorney General Pam Bondi to pause all FCPA-related proceedings until new enforcement guidelines are issued, which will prioritize American competitiveness.
The White House defended the decision, stating that the FCPA puts US businesses at a disadvantage against international competitors who engage in similar practices. A factsheet released by the administration argued that national security depends on American firms gaining strategic commercial advantages, and curbing ‘excessive, unpredictable’ enforcement of anti-bribery laws would help level the
This development comes as a potential reprieve for Adani Group executives, including chairman Gautam S Adani and his nephew Sagar Adani, who are among seven individuals charged in a bribery case filed by US prosecutors in New York. The indictment, dated November 21, 2024, accuses the executives of offering bribes totalling Rs 2,029 crore (approximately $265 million) to Indian government officials to secure solar energy supply contracts. The charges include bribery, fraud, obstruction of justice, and misleading investors.
Sources indicate that the pause in FCPA enforcement may also benefit Azure Power, which had a build-operate-transfer (BOT) deal with an Adani Group firm for a solar project. Since legal proceedings under the case are expected to be delayed until the Justice Department introduces revised policies, industry experts suggest this could provide temporary relief for the Adani Group and its executives.
Main Navigation neither the Adani Group nor Azure Power have issued an official statement on the development. However, market sentiment reflected optimism, with Adani Enterprises’ stock rising by 3% in early trading on Tuesday before closing 1.37% higher, even as the benchmark Sensex declined by 1.3%.
The FCPA, enacted in 1977, criminalizes the bribery of foreign officials to gain business advantages. In 2024, the US Justice Department and the Securities and Exchange Commission (SEC) launched 26 FCPA-related enforcement actions, with over 31 companies under investigation by year-end.
The indictment against the Adani executives alleges a complex bribery scheme aimed at securing lucrative solar contracts. The other accused individuals include Vineet Jain, Ranjit Gupta, Rupesh Agarwal, Cyril Cabanes, Saurabh Agarwal, and Deepak Malhotra
The FBI has described the case as a significant fraud operation, with Assistant Director James E. Dennehy stating that the defendants not only engaged in bribery but also attempted to mislead investors and obstruct justice.
With Trump’s order effectively freezing FCPA prosecutions, the fate of the Adani Group executives now hinges on the revised enforcement policies that the US Justice Department is expected to introduce in the coming months.
Indictment against Gautam Adani et al. is a 2024 federal indictment in the United States District Court for the Eastern District of New York. Indian billionaire Gautam Adani and seven top business executives of Adani Group and its affiliates have been charged for their alleged involvement in a scheme to pay hundreds of millions of dollars in bribes to Indian government officials and to hide the bribery from U.S. investors.
On November 20, 2024, a five-count indictment unsealed in Brooklyn, charges Indian Energy Company executives Gautam Adani, Sagar Adani, and Vineet Jain with securities and wire fraud for a multi-billion-dollar scheme involving false statements to U.S. investors and global financial institution.
Background
In March 2024, the United States expanded its probe into Adani Group, particularly focusing on founder Gautam Adani’s conduct and potential bribery by his group companies in exchange for favourable treatment regarding an energy project. The investigation is being handled by the United States Attorney for the Eastern District of New York and the United States Department of Justice Criminal Division’s fraud unit in Washington.
Indictment
An unsealed five-count indictment in Brooklyn federal court charges Gautam Adani, his associates, and executives from other firms with a bribery and fraud scheme involving more than $250 million in payments to Indian government officials. The alleged bribes secured lucrative solar energy contracts for Adani Green Energy, projected to yield over $2 billion in profits, while misleading U.S. and international investors through false statements to raise funds. The indictment also accuses other individuals, including former employees of a Canadian institutional investor, of obstructing investigations by deleting evidence and providing false information to authorities.
The defendants allegedly concealed the bribery scheme by making false and misleading statements while raising over $3 billion through loans and bond offerings marketed to U.S. investors. The case, investigated by the Federal Bureau of Investigation and the United States Department of Justice’s Fraud Section, highlights efforts to combat corruption and fraud impacting U.S. financial markets. Charges include securities fraud, wire fraud, violations of the Foreign Corrupt Practices Act, and obstruction of justice.
Proceedings
On 12 December 2024, Magistrate Judge Vera M. Scanlon of the US District Court for the Eastern District of New York issued an order stating that, in consultation with District Judge Nicholas Garaufis, the court marked USA v. Adani et al., 24 Crim. 433 (NGG), SEC v. Adani et al., 24 Civ. 8080 (VMS), and SEC v. Cabanes, 24 Civ. 8081 (VMS) as related. To avoid scheduling conflicts, all three cases are assigned to the judges overseeing the criminal case.
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Executive Editor, Corporate Tycoons - Pune, India
Executive Editor, The Flag Post - Bengaluru, India
Contributor, The Statesman, Hindu Business Line, Sarkaritel.com, Diplomacyindia.com
Former Economics Editor, PTI - New Delhi, India
Former Communications Advisor,
Alstom Group of Companies, SA - France/Belgium
