US President Donald Trump on Monday (Feb 10) signed an executive order that may provide reprieve to Indian conglomerate Adani Group. The United States president has ordered the Foreign Corrupt Practices Act (FCPA) of 1977 to be paused for at least a period of 180 days, while the newly appointed US Attorney General Pam Bondi reviews the FCPA legislation.

Advertisment

Also read | Hindenburg Research, the US based short-seller that accused Gautam Adani of fraud, shuts down

How will it help Adani?

Adani group founder and head Gautam Adani, his nephew Sagar and other executives, last year, were charged under the FCPA for allegedly bribing Indian officials some 250 million (about Rs 2,100 crore) in exchange for favourable terms for solar power.

Advertisment

This, as per the Joe Biden administration, was concealed from US banks and investors from whom the Adani Group raised billions of dollars for the project. FCPA law prohibits the bribing of foreign governments, political parties and others to secure business. As the Adani project involved links to American investors and banks, the Indian multi-billionaire was charged under the FCPA. 

Also read | GOP lawmaker slams Biden administration, DOJ over Gautam Adani probe: ‘What if India refuses extradition…’

The 180 review period pause is being seen as a relief for Adani, albeit one filled with suspense, and it remains to be seen what stand the DoJ takes after six months.

Advertisment

Trump's order

The US president, in his order, 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.

Also read | Adani ditches $553mn US loan for its Colombo Port project

Additionally, the order seeks to "review in detail all existing FCPA investigations or enforcement actions and take appropriate action with respect to such matters to restore proper bounds on FCPA enforcement and preserve Presidential foreign policy prerogatives".

This comes as half a dozen US Congressmen wrote to the new Attorney General against "questionable" decisions made by the US Department of Justice (DoJ). They said that Adani Group's indictment in the alleged bribery scam, "jeopardises the relationship with close ally India".

(With inputs from agencies)