- Adani had earlier dismissed the “baseless” allegations, saying he will fight the issue legally
- Last year, DoJ under President Joe Biden charged Adani for allegedly being part of a scheme to pay over USD 250 million (about Rs 2,100 crore) bribes to Indian officials in exchange of favourable terms for solar power contracts
- 6 US Congressmen demand probe into Biden DoJ action against Adani
NE NEWS SERVICE
WASHINGTON, FEB 11
US President Donald Trump has inked an executive order asking the justice department to pause the Foreign Corrupt Practices Act (FCPA).
Incidentally, Adani Group chairman Gautam Adani was indicted under this law over alleged bribery connected to a solar power plant. Adani had earlier dismissed the “baseless” allegations, saying he will fight the issue legally. Notably, Trump’s move comes ahead of Prime Minister Narendra Modi’s visit to the United States on February 12 and 13.
The President directed US Attorney General Pam Bondi to pause enforcement of FCPA, which was at the heart of some of the US Department of Justice’s most high-profile cases, including an indictment against Indian billionaire and Adani Group head Gautam Adani and his nephew Sagar.
Last year, DoJ under President Joe Biden charged Adani for allegedly being part of a scheme to pay over USD 250 million (about Rs 2,100 crore) bribe to Indian officials in exchange of favourable terms for solar power contracts.
This was concealed from the US banks and investors from whom the Adani group raised billions of dollars for the project, the prosecutors had alleged last year citing FCPA that allows pursuing foreign corruption allegations if they involve certain links to American investors or markets.
The pause and the review is being seen as a relief to the Adani Group but it remains to be seen what stand the DoJ takes after the six month review period.
The order that Trump signed asked “the Attorney General to review guidelines and policies governing investigations and enforcement actions under the FCPA” in 180 days.
“During the review period, the Attorney General shall cease initiation of any new FCPA investigations or enforcement actions, unless the Attorney General determines that an individual exception should be made,” it said.
Last year, the DoJ had charged a former executive at renewable energy firm Azure, which was at the heart of a case accusing Adani of perpetrating a bribery scheme. The DoJ also brought a criminal indictment.
While Adani Group had called the charges “baseless”, Azure said the former employees referenced in the charges had been “separated” from it for more than a year.
Separately, half a dozen US Congressmen have written to the new Attorney General against “questionable” decisions made by the US Department of Justice (DoJ) such as the indictment against the Adani Group in an alleged bribery scam, which “jeopardises the relationship with close ally India”.
Lance Gooden, Pat Fallon, Mike Haridopolos, Brandon Gill, William R Timmmons and Brian Babin on February 10 wrote to Pamela Bondi drawing “attention to some questionable decisions made by the DOJ under the Biden administration”.
“Some of these decisions involved selectively pursuing and abandoning cases, often acting against America’s interests at home and abroad, jeopardizing relationships with close allies like India,” the Congressmen said in the joint letter.
India, they said, has been an important ally of the United States for decades. This relationship has flourished beyond politics, trade, and economics by evolving into a continuous socio-cultural exchange between the world’s two largest democracies.
“This historical partnership and continuous dialogue between friends, however, was put at risk due to some unwise decisions by the Biden administration,” they said.
“We request you investigate the Biden DOJ’s conduct and would appreciate you sharing with us all records pertaining to this case, for a coordinated effort in uncovering the truth,” they added.
