Donald Trump makes reason for Gautam Adani to smile

United States President Donald Trump, in an executive order signed on Monday, paused enforcement of a federal law -- Foreign Corrupt Practices Act (FCPA) -- that makes it a crime for US businesses to bribe foreign officials. This is the same act under which industrialist Gautam Adani has been charged.

Trump, while signing the order, said the law puts companies at a disadvantage on the global stage. Further, he ordered newly confirmed Attorney General Pam Bondi to immediately stop actions taken under FCPA. This includes prosecutions of American individuals and companies who the Department of Justice (DoJ) has charged with bribing foreign government officials in attempts to gain business in other countries.

The new order hopes to restore American economic competitiveness by having Bondi draw up "revised, reasonable enforcement guidelines” for the Foreign Corrupt Practices Act of 1977, according to a White House fact sheet. It said that US companies "are harmed by FCPA over enforcement because they are prohibited from engaging in practices common among international competitors, creating an uneven playing field."

On November 20, the US SEC and DOJ announced parallel charges against Indian billionaire Gautam Adani, his nephew Sagar Adani, business associate Cyril Cabanes of Azure Power Global Ltd, and other senior business executives in connection with an alleged $250 million bribery scheme in violation of FCPA.

The SEC alleged that Adani misled US investors by falsely presenting robust anti-bribery measures while engaging in corrupt practices. The alleged incident occurred during a September 2021 bond offering by Adani Green, which raised $750 million, including $175 million from US investors. Arrest warrants were issued for Adani and Sagar Adani after a New York grand jury charged them with bribing Indian officials to secure lucrative solar energy contracts.

Now, the White House announced that all current and past FCPA-related actions will be reviewed, and once Attorney General Pam Bondi issues new, relaxed enforcement guidelines, all future FCPA investigations and actions will be governed by this revised approach and require approval from the Attorney General. If the US citizens involved in the case are cleared, it could potentially lead to a reprieve for Gautam Adani and his associates.

The potential impact of Trump’s suspension of FCPA enforcement is significant, particularly for companies like the Adani Group. While it remains to be seen whether this move will alter the trajectory of the Adani case, it has opened up a debate on how US businesses will navigate anti-corruption laws moving forward.