At least six US Congressmen are lobbying against the November 2024 indictment of Gautam Adani and officials of his companies on allegations of bribery, coinciding with a major move by President Donald Trump to suspend a key anti-corruption law.
- On Monday, the Congressmen, including Lance Gooden, William R. Timmons and Pat Fallon, wrote to the newly appointed US Attorney General Pamela Bondi alleging that the case was an overreach because it involved Indian companies operating in India.
- In the letter, they said they wanted to draw attention to “some questionable decisions” under the previous administration including “a misguided crusade” against the businessman.
- The letter coincided with an executive order by President Trump to suspend the Foreign Corrupt Practices Act (FCPA) “to further American economic and national security.”
Gautam, three other executives, and several former executives of the conglomerate, were indicted in November 2024 because they “allegedly bribed the Indian government to finance lucrative contracts.” In the alleged scheme, the executives paid $265million to government officials for a contract for Adani Green, the conglomerate’s renewable energy subsidiary. The indictment included violations of provisions of the now-suspended FCPA, and breaking securities laws by hiding the bribes while raising money from US investors.
A recent report by The Guardian shows that the Indian government relaxed national security rules for Adani Energy to build the Khavda plant, the project at the centre of the indictment, in a security zone along India’s border with Pakistan. The indictment triggered backlash in India and beyond, including in Kenya where several Adani subsidiaries had won or were in the process of winning key infrastructure projects.
In India, the indictment provided firepower for opposition groups, especially since Gautam has been a close ally of Prime Minister Narendra Modi, and the contracts in question were in the country, and in both Modi and Gautam’s home state of Gujarat.
Why Trump Might Save Adani
Combined with the Trump’s administration rapid reversal of Biden-era decisions across the board, and Modi’s visit to Washington, the latest lobbying might offer a reprieve for Gautam Adani and his companies if the new US administration decides to suspend prosecution.
The Adani Group has a wide ranging scope of investments, including companies in coal, infrastructure, renewable energy and agriculture. It is a dominant player in several sectors in India, including energy, airports, and infrastructure. Trump’s February 10th executive order triggered a 1%-4.5% rally for listed Adani companies in the markets, according to Indian media, suggesting some market confidence that Adani’s woes might be ending or will at least not be a major bottleneck to the companies’ fortunes.
The timing is also in Adani’s favour, as PM Modi’s Washington visit is seen as part of preemptive moves by New Delhi to align its agenda with Trump, including on investments, trade, migration, and regional geopolitics. Withdrawing or suspending the indictment, or pushing for a quick settlement, might be a small political price to pay for both President Trump and PM Modi, as they are both eager to stem China’s rise.
Meanwhile, Adani Group is engaged in a debt dispute with Bangladesh that has seen its power-producing arm, Adani Power, cut electricity supply to the country by half over outstanding payments. After signing a 25-year deal in 2017, the company built a coal power plant in India to supply power exclusively to Bangladesh. The country now owes about $800million against $85mn in monthly payments, and is pushing for full restoration.
