×

No relief for Gautam Adani? Despite pause on bribery law, US SEC seeks India's help in probe

The US Securities and Exchange Commission told a court that it has asked the Union Ministry of Law and Justice for assistance in the FCPA probe

(File) Adani Group chairman Gautam Adani | AFP

The Securities and Exchange Commission of the US has sought India's help in the probe into the alleged $265 million bribery scheme for which Adani Group chairman Gautam Adani was indicted last year.

The US regulator informed a New York court that it has written to the Union Ministry of Law and Justice regarding assistance in the investigation.

READ MORE: What is FCPA? Relief likely for Gautam Adani as Donald Trump halts US bribery law ahead of PM Modi's visit

The Centre is yet to respond to the issue publicly. However, last week, Prime Minister Narendra Modi, who was on a trip to the US, said he did not discuss the investigation with US President Donald Trump. Responding to a reporter in the White House, the PM said when two world leaders meet, such individual issues are not discussed.

This development comes as Trump signed an executive order, directing the US Department of Justice (DoJ) to halt the enforcement of the Foreign Corrupt Practices Act (FCPA). This was the same law under which Adani, his nephew Sagar Adani and his six aides were charged in the bribery case.

The DoJ claimed that the accused promised Indian officials over $250 million in exchange of energy contracts. Some of the investors funding these contracts were Americans. However, Adani has dismissed the allegations.

The FCPA was passed in 1977 to prevent US firms from encouraging corruption abroad. The law was amended in 1998 to include foreign companies and individuals involved in bribery within the US. This not only applies to paid bribes, but also money that is offered, planned or authorised by companies.

Following the pause on FCPA enforcement, the Attorney General will review the guidelines and policies in the next six months, during which the justice department will decide if remedial measures are required in past investigations.