In a major policy shift, US President Donald Trump signed an executive order on Monday directing the Department of Justice (DOJ) to pause prosecutions under the Foreign Corrupt Practices Act (FCPA).

This law, in place for nearly 50 years, prohibits American entities from bribing foreign officials to secure or maintain business deals. Trump’s move comes as a significant development, particularly concerning Indian billionaire Gautam Adani, who was under DOJ investigation for alleged bribery and fraud.

Trump’s executive order pauses the enforcement of the FCPA and tasks Attorney General Pam Bondi with reviewing past and ongoing cases under the law. The move signals a sharp departure from the previous Biden administration’s aggressive stance on corporate corruption and international business ethics.

The timing of this decision is particularly noteworthy, as Indian Prime Minister Narendra Modi is set to visit the US on February 12 for a two-day trip, during which he will hold bilateral talks with Trump.

Under Biden’s DOJ, Gautam Adani and his conglomerate were reportedly under investigation for alleged fraudulent activities and bribery related to securing solar energy contracts in India. Trump’s decision to halt FCPA prosecutions could significantly impact the Adani case, potentially stalling or even nullifying legal action against him in the US.

The DOJ was reportedly probing whether Adani Group violated the FCPA by bribing Indian government officials to secure business contracts while raising funds in the US under false pretenses. The allegations suggested that Adani Green executives offered bribes worth $265 million to state officials in Odisha, Andhra Pradesh, Tamil Nadu, Chhattisgarh, and Jammu & Kashmir to obtain lucrative power contracts.

With the DOJ’s enforcement powers now effectively frozen, any ongoing investigations Read More…