Trump Suspends US Anti-Bribery Law, Potential Relief for Adani Group
In a major policy shift, President Donald Trump has signed an executive order suspending prosecutions under the Foreign Corrupt Practices Act (FCPA), a law that penalizes individuals and companies for bribing foreign government officials to secure business deals.
While the move aims to support American businesses by removing restrictions that allegedly hinder their global competitiveness, it may also offer relief to key Adani Group executives currently facing bribery charges in a US court.
Impact on Adani Group and Azure Power
Sources suggest that this decision could benefit Azure Power, which had a contractual agreement with an Adani Group firm for a solar project. Since all FCPA-related proceedings are now paused until new enforcement guidelines are introduced, legal actions against Gautam Adani, Sagar Adani, and others could slow down significantly.
While neither Azure Power nor Adani Group commented on the development, Adani Enterprises' stock experienced a 3% surge in early trading, closing 1.37% higher despite a broader market downturn.
Trump’s Justification for the Executive Order
The directive instructs the US Attorney General to revise the enforcement framework of the FCPA, ensuring that future investigations align with policies designed to "promote American competitiveness."
A statement from the administration argues that the FCPA places American companies at a disadvantage compared to international competitors who allegedly engage in similar practices without consequences. The policy shift is being positioned as a move to strengthen national security by allowing US firms to compete more effectively on the global stage.
Adani Group’s Legal Challenges in the US
In late 2024, US prosecutors charged Gautam Adani, Sagar Adani, and six others in connection with an alleged bribery scheme to secure solar energy contracts in India. Reports suggest that over $265 million (₹2,029 crore) in bribes were paid to Indian officials, with allegations of fraud, investor deception, and obstruction of justice.
What’s Next?
With FCPA enforcement now temporarily halted, ongoing investigations, including those involving the Adani Group, may experience significant delays or even reconsideration under the revised legal framework. The final impact will depend on the new enforcement policies introduced in the coming months.
