Relief for Adani Group: Trump Pauses Enforcement of Foreign Bribery Law Amid Investigation
Relief for Adani Group: Trump Pauses Enforcement of Foreign Bribery Law
US President Donald Trump has signed an executive order pausing the enforcement of the Foreign Corrupt Practices Act (FCPA), providing potential relief to the Adani Group amid an ongoing bribery investigation. This decision halts the prosecution of alleged foreign bribery activities related to the Indian conglomerate, offering a temporary reprieve from the legal pressure surrounding the company.
The pause on the Foreign Corrupt Practices Act (FCPA) enforcement was signed on February 11, 2025, by President Donald Trump, instructing the U.S. Department of Justice (DoJ) to halt investigations into potential foreign bribery schemes.
The FCPA, enacted in 1977, prohibits U.S. and foreign companies operating in the U.S. from bribing foreign government officials to obtain or retain business.
This law has been at the center of the Adani Group investigation, with U.S. authorities accusing the company of paying over $250 million in bribes to Indian officials in exchange for favorable solar power contracts. The investigation began in 2024 under the Biden administration.
Background on Adani Group’s Investigation:
The Department of Justice (DoJ) had alleged that the Adani Group, led by Gautam Adani and his nephew Sagar Adani, used bribes to influence Indian officials and secure contracts for their solar power ventures.
The charges include claims that the bribe payments were concealed from U.S. banks and investors who had provided billions of dollars in funding for these projects.
Adani Group has strongly denied the allegations, calling them “baseless” and maintaining that it did not engage in any illegal activity.
Impact of the Pause and Review:
The pause on the FCPA enforcement is expected to last for 180 days, during which U.S. Attorney General Pamela Bondi will review the policies surrounding the investigation and enforcement of foreign bribery laws.
During this period, no new FCPA cases will be initiated unless deemed an exception, and existing investigations will be reviewed for compliance with the new guidelines once they are issued.
Aspects of the Review:
The review will assess the impact of the FCPA on international relations and presidential foreign policy prerogatives, particularly concerning the Adani Group case.
The Attorney General will evaluate whether any inappropriate actions were taken during past investigations and, if necessary, recommend remedial measures.
U.S. Congressmen Question DOJ’s Actions:
U.S. Congressmen have expressed concerns over the ongoing investigation against Adani Group, arguing that pursuing the case against an Indian company, primarily operating within India, may harm U.S.-India relations.
A joint letter, signed by six Congressmen including Lance Gooden, Pat Fallon, and others, criticized the Biden administration’s handling of the case, accusing the DoJ of overstepping its bounds by interfering in an issue that should have been dealt with by Indian authorities.
Congressmen’s Concerns:
The letter highlighted the important relationship between India and the U.S., emphasizing that pursuing a case related to actions occurring entirely in India could damage the long-standing strategic partnership between the two democracies.
The Congressmen questioned whether the Biden administration had acted in the best interests of U.S. foreign policy by pursuing a case without clear ties to U.S. interests.
Looking Ahead:
As the 180-day review progresses, the Adani Group and its executives will likely keep a close eye on any developments, while also addressing growing concerns about the potential impact on their global operations.
It remains to be seen whether the DoJ will continue the case after the review or if a shift in policy could lead to a dropped investigation.