US President Donald Trump has signed an executive order directing the Justice Department to suspend prosecutions of Americans accused of bribing foreign government officials to secure business deals.
This directive affects enforcement of the Foreign Corrupt Practices Act (FCPA) of 1977, the same law under which Indian industrialist Gautam Adani has been charged.
Under the order, US Attorney General Pam Bondi is instructed to halt FCPA prosecutions until she establishes new enforcement guidelines aimed at enhancing American competitiveness.
According to the document, future FCPA investigations will follow this revised framework and require approval from the attorney general.
The White House argues that the law places US companies at a competitive disadvantage, as foreign rivals often engage in similar practices. A White House factsheet, cited by Reuters, states that limiting aggressive FCPA enforcement will help American businesses gain strategic global advantages.
Adani bribery fraud case
On November 20, the US Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) announced criminal and civil charges against Gautam Adani, his nephew Sagar Adani, and business associate Cyril Cabanes of Azure Power Global Ltd, along with other senior executives.
They were accused of participating in a $250 million bribery scheme to secure Indian government contracts, violating the FCPA.
The SEC claims that Adani misled US investors by falsely presenting strong anti-bribery policies while allegedly engaging in corrupt activities.
The case centers on a September 2021 bond offering by Adani Green Energy, which raised $750 million, including $175 million from U.S. investors.
Following a New York grand jury indictment, arrest warrants were issued for Gautam and Sagar Adani on charges of bribing Indian officials to secure lucrative solar energy contracts.
The news caused Adani Group stocks to plunge by up to 20% when markets opened.
The Adani Group, however, has denied the allegations, calling them “baseless” and emphasising that its executives have not been charged under FCPA for the violations mentioned in the DOJ’s indictment or the SEC’s complaint.
Instead, they face charges related to securities fraud and wire fraud conspiracy, according to a November 2024 stock exchange filing by Adani Green Energy.
