Trump Suspends U.S. Bribery Law Impact on Adani Case

Donald Trump has signed an executive order that halts prosecutions under the Foreign Corrupt Practices Act (FCPA), a U.S. law that prohibits American entities from engaging in bribery of foreign officials to secure or maintain business deals overseas.

The order directs the Department of Justice (DoJ) to pause actions against Americans accused of such crimes, with instructions for Attorney General Pam Bondi to review both current and past cases related to the law. Additionally, the review will result in the development of new guidelines for enforcing the FCPA moving forward.

This decision comes at a critical time, just before Indian Prime Minister Narendra Modi’s high-profile visit to the United States on February 12. Modi is set to hold bilateral talks with Donald Trump during the two-day visit, which highlights the importance of strengthening U.S.-India relations. The timing of Trump’s executive order has drawn attention, as it may serve as a political signal in the context of ongoing discussions between the two countries. Trump’s decision could have wide-ranging implications for both U.S. domestic law and international diplomacy.

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Trump Order and Its Impact on Adani Group’s Legal Challenges

Under the previous administration led by President Joe Biden, the U.S. Department of Justice had initiated an investigation into the Adani Group, a powerful Indian conglomerate, over allegations of fraud and involvement in a bribery scheme. Billionaire Gautam Adani, the head of the group, was reportedly under scrutiny as part of this investigation, with the DoJ exploring whether the Adani Group violated the FCPA by allegedly offering bribes to foreign government officials to gain business advantages.

With Trump’s executive order now in place, it casts a shadow over the future of any legal action against Adani and his group in the U.S. The suspension of FCPA prosecutions may lead to delays in the investigation or even weaken the case against Adani, depending on the scope of the order’s enforcement. This development is likely to have a significant impact on both the Adani Group’s legal challenges and the broader business environment, particularly for multinational companies facing similar concerns over foreign bribery violations.

The potential repercussions of this move are wide-ranging, especially for the global business community, where the FCPA has long been a key tool in promoting corporate transparency and accountability in international dealings. The shift in enforcement priorities may also raise questions about the consistency of U.S. anti-corruption policies and their application under different administrations, especially when it comes to high-profile figures like Gautam Adani, whose influence and business dealings are closely watched by both Indian and international stakeholders.

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Impact of Trump’s Decision on Adani Group’s Legal Risks and Global Scrutiny

Hindenburg Research accused the Adani Group of stock manipulation and corporate fraud, suggesting potential corrupt dealings with foreign officials. If the U.S. had planned to investigate these allegations under the FCPA, Donald Trump’s recent decision could delay or halt any legal action against the Adani Group in the U.S.

With the U.S. stepping back, the responsibility now falls on Indian regulators such as the Securities and Exchange Board of India (SEBI) and the Enforcement Directorate (ED). If these agencies choose not to conduct a more extensive investigation, Gautam Adani could avoid immediate legal consequences.

Although Trump’s decision may protect Adani from U.S. legal challenges, it doesn’t eliminate international scrutiny. Investors and watchdogs in the UK, EU, and other global markets are likely to continue monitoring the group’s business activities closely.

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U.S. Indictment of Adani Group Over Alleged Bribery and Fraud in Solar Power Deals

The U.S. Department of Justice had previously indicted Gautam Adani, his nephew Sagar Adani, and other senior Adani Green executives, accusing them of bribing Indian state officials with $265 million to secure solar power contracts. They allegedly raised funds for these projects in the U.S. while claiming to adhere to anti-bribery laws, which would amount to fraud under U.S. federal securities law, with potential criminal liabilities if proven.

The U.S. case is based on allegations that Adani Green bribed officials in Odisha, Andhra Pradesh, and possibly Tamil Nadu, Chhattisgarh, and Jammu and Kashmir, in order to secure agreements with power distribution companies to purchase solar power at inflated prices.

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