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Donald Trump’s executive order pauses US bribery law enforcement: Will it benefit Gautam Adani?
The order that President Donald Trump signed asked ‘the Attorney General to review guidelines and policies governing investigations and enforcement actions under the FCPA’ in 180 days, which is being seen as a big relief for Indian billionaire Gautam Adani.
US President Donald Trump on 10 February signed an executive order directing the Department of Justice (DoJ) to pause enforcing a nearly half-century-old law, which the Joe Biden administration used to launch a probe against the Adani group.
Reportedly, Donald Trump has issued an executive order to pause enforcing the -year-old Foreign Corrupt Practices Act (FCPA). The order also directs US Attorney General Pam Bondi to review current and past decisions related to the law and make new guidelines for enforcement.
Relief for Gautam Adani?
The pause and the review order are being seen as temporary relief to the Adani Group for now. What stand the DoJ takes after the six-month review period remains to be seen. The order that Trump signed asked "the Attorney General to review guidelines and policies governing investigations and enforcement actions under the FCPA" in 180 days.
"During the review period, the Attorney General shall cease initiation of any new FCPA investigations or enforcement actions, unless the Attorney General determines that an individual exception should be made," the executive order said, adding that "review in detail all existing FCPA investigations or enforcement actions and take appropriate action with respect to such matters to restore proper bounds on FCPA enforcement and preserve Presidential foreign policy prerogatives".
Last year, DoJ charged Adani for allegedly being part of a scheme to pay over $250 million (about ₹2,100 crore) bribe to Indian officials in exchange of favourable terms for solar power contracts. This was concealed from the US banks and investors from whom the Adani group raised billions of dollars for the project, the prosecutors had alleged last year citing FCPA that allows pursuing foreign corruption allegations if they involve certain links to American investors or markets. The DoJ had also filed a criminal indictment against a former executive of renewable energy firm Azure, key to the case accusing Adani of bribery.
While Adani Group had called the charges "baseless", Azure said the former employees referenced in the charges had been "separated" from it for more than a year.
US Congressmen's Push to review charges on Adani
Six members of the US Congress have to the new Attorney General Pamela Bondi raising concerns over 'questionable decisions made by the DOJ under the
Biden administration' which often act against America’s interests 'jeopardizing relationships with close allies like India.'
US lawmakers demand second look at charges, call indictment decision ‘reckless’ - Read full letter
"Instead of deferring the case to the appropriate Indian authorities, the Biden DOJ decided to push forward and indict the company’s executives without any real injury to U.S. interests being present. There was no compelling reason to pursue a case in a manner that could complicate relations with an ally like India unless some external factors were at play. This misguided crusade came at the risk of harming our relationship with a strategic geopolitical partner like India immediately preceding President Trump’s return to the Oval Office," the letter read.
"We request you investigate the Biden DOJ's conduct and would appreciate you sharing with us all records pertaining to this case, for a coordinated effort in uncovering the truth," it added.
(With inputs from agencies)
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Business NewsNewsUs NewsDonald Trump’s executive order pauses US bribery law enforcement: Will it benefit Gautam Adani?
First Published:11 Feb 2025, 12:18 PM IST
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