The Adani Group was pushed into another whirlwind in November 2024, when the US Justice Department indicted the company associates under 5 different counts, particularly under the Foreign Corrupt Practices Act or FCPA.
Trump Pauses FCPA
The new year and the new presidency in the United States appear to have brought new hope for the Ahmedabad-based company.
In a new development from Donald Trump's White House, the Trump-led administration has signed another executive order, this time putting a pause on the aforementioned Foreign Corrupt Practices Act.
It is to be noted that, as per a report from the Reuters, the current pause on prosecution is limited to Americans who have been booked under the law. The state of non-Americans is not known.
Industrialist Gautam Adani | File
Adani group associates were indicted on five counts,
The first count is the Conspiracy to Violate FCPA or Foreign Corrupt Practices Act.
The Second count is with regards to Securities Fraud Conspiracy.
The Third count is on Wire Fraud Conspiracy.
The Fourth count is on Securities Fraud- the 2021 144A Bond.
The Fifth Count is Conspiracy to Obstruct Justice.
The first count is said to be one of the biggest of all, and, therefore, if legal proceedings in the matter are stopped, this could boost Adani's prospects, not just for getting out of the litigation, but also for future investments in US.
PIC: AFP
US Congressmen Write To US AG
Another piece of development that runs a wave of hope in the company is a development from the US Congress.
As per reports, 6 Republican US congressmen have written a letter to the country's Attorney General Pamela Jo Bondi.
In this letter, these congressmen stated that the ongoing litigation against Adani, who is said to be close to the ruling establishment will not be beneficial for the US and India's partnership.
This further signals the US intention to accommodate elements close to the Indian government, including the Adani Group.
Adani Shares In Green
As a result of this, the company shares also appear to have reacted positively.
On a dull day, when the markets are running in the red, the conglomerate's flagship Adani Enterprises shares traded in the green, with major gains of 3.15 per cent or Rs 72.20.
This has picked up the overall of the company shares to Rs 2,363.00 per piece.
