As Trump pauses FCPA, Adani executives may benefit (original) (raw)

Mumbai: US President Donald Trump's executive order pausing enforcement of the Foreign Corrupt Practices Act (FCPA) with the aim of enhancing global competitiveness of American companies and supporting its national security interests could bring relief to Adani Group executives indicted last November. The 1977 law prohibits US and overseas firms from bribing foreign officials to secure business. The order directs Attorney General Pam Bondi to stop new FCPA investigations and review existing cases for 180 days.

The White House said the FCPA has been enforced beyond its original scope and has harmed US businesses. The order states that enforcement wastes prosecutorial resources and puts American companies at a disadvantage in global markets. The administration says the pause will allow a review of enforcement policies to align with US economic and national security interests.

Ashish K Singh, managing partner at Capstone Legal, said the order is a relief for Adani executives. "The six-month review period would also entail careful reassessment of facts, and it is unlikely that any further action will be taken, given the facts and circumstances of this case. All said and done, this comes as a major relief for Adani and other Indian businesses which are doing business with the US," Singh said. "The executive order also improves certainty for Indian businesses that they would not be selectively targeted by foreign law enforcement agencies. In the long run, it would help US companies looking to grow their business aggressively under the new administration," he said.

A US court has consolidated civil and criminal cases against Adani executives, including founder Gautam Adani, his nephew Sagar Adani, and senior executive Vneet S. Jaain.

While Adani Green Energy Ltd (AGEL) clarified in November that the three executives were not charged under FCPA or bribery-related violations, they face charges of securities fraud conspiracy, wire fraud conspiracy, and securities fraud, including allegations tied to a 2021 bond offering.

Pallavi Pratap, managing partner of Pratap & Co, said the accusations against Gautam Adani are, in themselves, extremely flimsy.

"Claiming that he orchestrated a bribery scheme is an exaggerated interpretation of these allegations... We will see whether these charges hold up under the preliminary review being conducted by the Department of Justice," she said.