Indian billionaire Gautam Adani has gained a considerable advantage following US President Donald Trump’s executive order that suspends the enforcement of the Foreign Corrupt Practices Act (FCPA). This action effectively alleviates the bribery allegations that Adani and his associates were facing in the United States. The timing of this decision is notable, occurring just days prior to Prime Minister Narendra Modi’s anticipated visit to Washington, where discussions are expected to focus on enhancing economic relations and strategic partnerships. On February 10, Trump signed the order, instructing the Justice Department to cease prosecutions under the nearly five-decade-old anti-bribery statute and requiring Attorney General Pam Bondi to reassess previous cases and formulate new enforcement protocols. The FCPA, which was established in 1977, prohibits US-affiliated companies from engaging in bribery of foreign officials. However, Trump has consistently contended that the law places American businesses at a disadvantage in the international marketplace. While signing the order in the Oval Office, Trump remarked that it would significantly benefit American commerce, labeling the FCPA as a “horrible law” that hinders US firms from competing globally. He asserted that the law’s enforcement has resulted in unwarranted investigations and has created an environment where US businesses operate abroad with the constant threat of prosecution.
This executive order holds particular importance for the Adani Group, which has faced scrutiny from the US Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) regarding alleged bribery activities. In November 2024, both agencies charged Gautam Adani, his nephew Sagar Adani, and former Azure Power Global executive Cyril Cabanes under the FCPA, alleging that Adani’s companies had either paid or promised substantial bribes to Indian government officials to obtain inflated solar energy contracts. The purported bribes were allegedly hidden during a $750 million bond issuance by Adani Green, the renewable energy division of the conglomerate. These allegations, which have placed significant strain on Adani’s international operations, are now anticipated to be dismissed following Trump’s decision to suspend enforcement of the Foreign Corrupt Practices Act (FCPA). The timing of Trump’s directive is particularly noteworthy, as it coincides with Prime Minister Narendra Modi’s imminent visit to Washington. Modi, who is scheduled to arrive for a two-day engagement, is expected to engage in discussions with Trump aimed at enhancing economic and strategic collaboration between the two countries. By eliminating a legal obstacle for one of India’s most influential business figures, this decision may facilitate the resolution of a contentious issue between Washington and New Delhi, especially considering Modi’s close ties to Adani. In the meantime, organizations focused on anti-corruption, such as Transparency International, have expressed disapproval of the FCPA rollback, contending that the United States has historically been at the forefront of global initiatives to combat corporate corruption. Nevertheless, a fact sheet from the White House justified the action, asserting that “American national security relies on US companies securing strategic commercial advantages globally.”
