Sentinel Digital Desk
US President Donald Trump has ordered a pause in enforcing a nearly 50-year-old law that was used to target the Adani Group under the previous Biden administration.
The Foreign Corrupt Practices Act (FCPA) prohibits companies and individuals with US connections from bribing foreign officials to secure business abroad. President Trump had previously considered pausing the law during his first term.
President Trump criticized the FCPA, saying, "It sounds good on paper, but in practice, it's a disaster." He added that it leads to investigations and indictments whenever an American does business abroad, making others hesitant to engage with Americans.
The Adani Group, India's largest and fastest-growing business portfolio, denied allegations from the Biden administration last year that its officials were involved in a scheme to bribe Indian officials with over $250 million for favorable solar power contracts.
President Trump's executive order stated that his administration aims to preserve presidential authority in foreign affairs and promote American economic and national security by removing excessive barriers to US commerce abroad.
President Trump's executive order directed the US Attorney General to review FCPA investigations and restore proper enforcement limits. Following the order, Adani Group stocks saw significant gains, with Adani Enterprises Ltd rising 4.28% and Adani Power Ltd increasing 4.17% to Rs 511.90 per share.