India’s Adani Group might get a reprieve from an ongoing corruption probe in the US following President Donald Trump’s order to pause prosecution of Americans accused of bribing foreign officials, as the political row in New Delhi over the matter continues to simmer.
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US prosecutors late last year accused Indian tycoon Gautam Adani and a nephew of his of orchestrating a US$265 million scheme to bribe Indian officials to secure power supply deals, a charge which the Adani Group has denied.
The case falls under US jurisdiction because the scheme involved US investors allegedly being misled by the Adani Group as US financial systems were used to raise billions for the conglomerate through loans and bonds.
The charges have become political fodder for Indian opposition parties because Adani is seen as close to Prime Minister Narendra Modi’s Bharatiya Janata Party (BJP)-led federal government.
Trump’s order froze enforcement of the nearly half-century-old Foreign Corrupt Practices Act (FCPA) with Attorney General Pam Bondy directed to review current and past actions related to the law and prepare new guidelines for enforcement.
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The Indian media has highlighted the development as a possible breather for the Adani Group, whose interests span ports, airports and power generation projects in India and other countries. But experts say it is too early to conclude that the reprieve for the group would last.